Question

Offered Price $ 30.00

3-1 Small Group Discussion: Deductibility

Question # 00714218
Subject: Accounting
Topic: Accounting
Due on: 01/11/2019
Posted On: 01/10/2019 08:03 PM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
9878
Tutorials:
14916
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

3-1 Small Group Discussion: Deductibility

 

Previous Next 

In this activity, your instructor will assign you to a group with four of your peers. Each of you will research the possible tax consequences of each of the alternative rewards that Bob is considering and you will report your findings back to your group.

Your client, Bob, is the CEO of a corporation that has 12 stockholders who are also the only employees of the business. The corporation operates a boat dealership in Sherman, Texas. The corporation has accumulated earnings and profits of $3,000,000, not including the current year’s taxable income, which is expected to be $800,000. No dividends have been paid to stockholders. Bob has been very pleased with the corporation’s performance and he wants to reward the stockholders.

Bob is considering paying cash dividends of $10,000 per share or giving each employee a new boat that costs $10,000 and retails for $15,000.

In addition, when talking with Bob, you found that he has a corporate plane that he regularly uses for vacation and that he allows other corporate officers to use for vacation.

Should Bob consider paying a large year-end bonus to each employee instead of declaring dividends? Why or why not? Is there a tax issue that Bob needs to consider when loaning the corporate plane to stockholders for vacations? What actions can Bob take to minimize corporate tax while also providing rewards for stockholders?

Once everyone in the group has reported on the possible tax consequences, build on one another’s ideas until, as a group, you have fully fleshed out the advantages and disadvantages of each approach to Bob’s situation.

Support your posts with scholarly sources.

To complete this assignment, review the Discussion Rubric

Tutorials for this Question
Available for
$ 30.00

3-1 Small Group Discussion: Deductibility

Tutorial # 00714670
Posted On: 01/10/2019 08:03 PM
Posted By:
Best Tutors for school students, college students neil2103
Expert tutors with experiences and qualities
Questions:
9878
Tutorials:
14916
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview … Di…
Attachments
According_to_the_calculation.docx (15.8 KB)
Preview: that costs $10,000 and retails for $15,000.In addition, when talking with Bob, y.....
Purchase this Tutorial @ $30.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
List of Main Subjects
Accounting
Anthropology
Architecture
Art
Asian Studies
Astronomy
Biology
Business
Chemistry
Communications
Computer Science
Economics
Education
Engineering
English
Finance
Foreign Languages
Gender Studies
General Questions
Geography
Geology
Health Care
History
Kindergarten
Law
Linguistics
Literary Studies
Marketing
Mathematics
Music
Nursing
Performing Arts
Philosophy
Physics
Political Science
Psychology
Religious Studies
Sociology
Statistics
Urban Planning and Policy
View all subjects...
Loading...