Homework 02 - Intro The worksheet that follows provides a...

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Unformatted text preview: Intro The worksheet that follows provides a pro forma workpaper to help you solve the assigned homework problem. It organizes your solution in a manner that is consistent with the analytical methods that we discuss in class and allow you to focus on the technical issues, rather than workpaper techniques and computer skills. However, you should continuously analyze the organization of the solution and the answers that you receive, as you work the problems. That is the only way that you will learn the skills and techniques that you will need for your long-term success. You should also refrain from checking the correct answers until after you have completed your solution. Click on the appropriate tab below to move to the worksheet for the homework problem that you want to work on. Once you have completed the assignment, save the file to your computer, then submit it in the manner prescribed in the course syllabus. NOTE: Cells with red dots in them contain notes that provide additional information about the cell contents. Double click on those cells to read the notes. Also, you need enter information only in the cells that are highlighted in bright yellow. Page 1 For each tax inin column A in the table below, record the entity responsible for paying the tax (col. D), the period (or For each tax column A in the table below, record the entity responsible for paying the tax (col. D), the period (or event) when the tax base is is valued (col. F), and the items that are included in the tax base (col. G). Ignore the columns event) when the tax base valued (col. F), and the items that are included in the tax base (col. G). Ignore the columns that are greyed out. You can find information about these taxes inin chapter 1 of the text. that are greyed out. You can find information about these taxes chapter 1 of the text. Tax Base Tax Tax Rate Schedule Brackets % Tax Paying Entity Method Valuation…. Period Items Property Realty The owner Varies by state property law Personalty The owner Varies by state property laws Real estate and any capital improvements that are classified as fixtures Personal properties (e.g., automobile, stocks, bonds, boat, or RV) Transactions Sales The purchaser Use The purchaser Severence The producer Anything that is subject to sales tax typically not The time of the purchase groceries or medicines When the purchaser Anything that is subject to registers the item in his or sales tax typically not her home state groceries or medicines When the natural resources Natural resources (e.g., are extracted oil, gas, iron ore, or coal) Gratutitous Transfers Gift Either the donor or the donee Estate The tax is paid by the estate itself Any transfer where full consideration is not received in return but typically excluse gifts to spouse, political organization, and tuition On the date of the transfer or medical expenses Any property that is After all the creditors are transfer after the death of paid by the estate the owner Income U.S. Individual Individual who earns the income The year the income is earned Any income that is subject to income tax minus any expenses that are deductible U.S. Corporation Corporation that earns the income but typically exclude nonprofit or S class corporation The year the income is earned Gross income minus any deductions ...
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