You just hired a former individual tax preparer to be in your tax accounting department. While she has a degree in taxation, all her experience has focused on individual returns.
To make sure she completely understands the differences between individual and business tax accounting, you ask her to review some of the materials from her college courses in taxation.
You have asked her to prepare a report of 450?600 words on the following topics:
Specifically, how the treatment of the following items differs between individual and business income tax accounting: a. depreciation b. double taxation c. dividends Using the following information for b and c, create a brief numerical result demonstrating the impact of different tax treatment for individuals versus businesses. b. For b, assume taxable income of a corporation is $100,000 and it subsequently pays out $100,000 in dividends to all its shareholders. c. For c, assume a corporation gets dividends of $10,000 from another company, and it happens to be in the 34% tax bracket versus an individual in any bracket.
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Reading Assignment None
Assignment Objectives
Understand the moral standards embodied in the code of ethics of the accounting profession, and demonstrate the ability to distinguish between the accounting principles used for federal income taxation of both individuals and business Identify, formulate, and communicate the relevant accounting issues in the Sarbanes-Oxley area and the ability to communicate effectively in business situations by writing a report