ACCT 323 6381 INCOME TAX I (Spring 2017)
FINAL EXAMINATION
1)
If a taxpayer in the 28% tax bracket has the opportunity to invest in a taxable
corporate bond that pays 6% interest or to invest in a tax
HORNGREN'S ACCOUNTING - Tenth Edition
1.
Where is the current portion of notes payable reported on the balance sheet?
2.
What is an amortization schedule?
3.
What is a mortgage payable?
4.
What is a b
ACCT 323 6381 INCOME TAX I (Spring 2017)
QUIZ I
1) Under a divorce agreement executed this year, an ex-wife receives from her ex-husband cash
of $25,000 annually for ten years. The agreement does not
FRINGE BENEFITS
-Fringe Benefits = Non-cash benefits to employees in addition to their cash compensation. They are taxable to
the employee on receipt.
Taxable Fringe Benefits
-Taxable fringe benefits
83(b) election
-Up until 30 days after the grant date, employees can make what is known as an 83(b) election; once made,
however, this election is irrevocable.
-If the employee makes the 83(b) electio
Valuation of Long-Term Bonds
-A long-term bond produces two cash flows:
(1) periodic interest payments during the life of the bond, and
(2) the principal (face value) paid at maturity.
-The periodic i
COMPOUND INTEREST TABLES
-Future Value Factor (FVF) for 1 =
FVF n ,i=(1+i)n
FVFn,i = future value for n periods at i interest
n = number of periods
i = rate of interest for a single period
-Interest i
Limits on salary deductibility
-Employers are generally allowed to deduct reasonable compensation paid to employees.
-Determining whether compensation is reasonable in amount is a facts and circumstan
Future Value of a Single Sum
Future Value=PV (FVF n ,i )
Present Value of a Single Sum
-The present value is the amount needed to invest now, to produce a known future value.
-The PV is always a small
The Nature of Interest
-Interest = is payment for the use of money. It is the excess cash received or repaid over and above the amount
lent or borrowed (principle).
-Variables in Interest Computation:
PRESENT VALUE MEASUREMENT
-Expected Cash Flow Approach = uses a range of cash flows and incorporates the probabilities of those cash
flows to provide a more relevant measurement of present value.
-To
Chapter 14
Demo Doc 1: Bonds Payable: Straight-Line Amortization
Angle Corp. issued $10,000 maturity value of bonds payable for $9,639 cash on January 1,
2030. The bonds had a stated rate (or coupon r
Future Value of an Annuity Due
-Annuity due = assumes periodic rents occur at
the beginning of each period.
-This means an annuity due will accumulate
interest during the first period (in contrast to
Chapter 12 Compensation
SALARY AND WAGES
-Current compensation paid to employees in the form of salary and wages has tax consequences to both
employees and employers.
Employee Considerations for Salar
Annuities
-Many situations arise in which a series of dollar amounts are paid or received periodically.
EX: installment loans or sales, invested funds, or a series of realized cost savings.
-Such a p
joint and separate assessment
relevant to ACCA Qualification Papers F6 and P6 (MYS)
With effect from the year of assessment 2001, either a husband or wife
(referred to as the 'joining party') can elec
F8 Audit and
Assurance
a guide to using the
examiners reports
ACCAs self-study guide for F8 is a fantastic resource designed especially to help
you if you are taking F8. Hopefully you have already ha
F9 Financial
Management
a guide to reflection
for retake students
ACCAs retake guide for F9 is a fantastic resource designed especially to help you
if you are retaking F9. Hopefully you have already
technical
page 61
refund of czech vat
to foreign tourists
RELEVANT TO ACCA QUALIFICATION PAPER f6 (CZE)
The Czech VAT Act lays down rules for the refund of VAT in various situations. This article look
Present Value of an Annuity Due
-In determining the present value of an annuity due, there is always one fewer discount period.
-Because each cash flow comes exactly one period sooner in the present v
Group-Term Life Insurance
-Employees may exclude from income the employer-provided benefit for the first $50,000 of group-term life
insurance. Any remaining group-term life insurance benefit is taxabl
Employer Considerations for Stock Options
Non-Qualified Options
-With NQOs, employers deduct the bargain element that employees recognize as income when the employees
exercise the NQOs.
-NQOs is usual
MORE COMPLEX SITUATIONS
-Solving time value Problems often requires using more than one table.
-For example, a business problem may need computations of both present value of a single sum and present
Fundamental Variables
FUNDAMENTAL VARIABLES
RATE OF INTEREST.
This rate, unless otherwise stated, is an annual rate that must be adjusted to reflect the length of the
compounding period if less than a
3/19/16
Chapter 6 Accounting and the Time Value of Money
BASIC TIME VALUE CONCEPTS
-Time value of money = A dollar received today is worth more than a dollar promised at sometime in the
future.
Becau
-Compound Interest = is computed on principal and on any interest earned that has not been paid or
withdrawn. It is the return on (or growth of) the principal for 2 or more time periods.
-Compounding
ACCT 323 6381 INCOME TAX I (Spring 2017)
WEEK 8 HOMEWORK
1) Dick Jones, a single taxpayer, had $70,000 in taxable income before personal
exemptions in the current year. Jones had no tax preferences. H
ACCT 323 6380 INCOME TAX I (Summer 2016)
QUIZ II
(1) Lauren is a sole proprietor. She owns, leases, and manages apartment buildings. During the
current year, Lauren incurred the following costs. Which
Ch. & Text Page #:
Problem #:
Requirement #:
ENDING INVENTORY BY THE GROSS PROFIT METHOD
Beginning Inventory
Net purchases*
Cost of goods available
Estimated Cost of good sold:
Net Sales revenue
Less: