Seminar.Week1-Jan. 10, 2011 - FMGT 4410 Seminar Questions...

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FMGT 4410 –Seminar Questions Week 1 Week of January 10, 2011 1. Comment on the following scenarios, providing citations to support your opinion: a) Billy Hilly has come to you to tell you that he has found a great way of generating income of which only one-half is taxable as a capital gain. He buys a bond that pays interest annually and he holds it until just before the payment date and then he sells it, including the accrued interest, at a gain. b) Opco Inc. recently borrowed $300,000 to buy 30 acres of industrial land. The corporation has constructed a building, shipping and receiving areas and parking for employees on this property using up 20 acres. The remaining 10 acres is available for future needs. Is all of the interest on the $300,000 loan deductible? c) Ms. Cautious has just bought some gold as a protection against inflation. However, she did not have the cash to make the purchase so she borrowed from the bank to buy the gold. This is the first time that she has done this and she plans
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This note was uploaded on 07/29/2011 for the course FMGT 1000 taught by Professor Jen during the Spring '11 term at British Columbia Institute of Technology.

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Seminar.Week1-Jan. 10, 2011 - FMGT 4410 Seminar Questions...

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