Wise Holland Corporation, An Case Essay

The Responsible Company is written by Yvon Chouinard who is founder and co-owner of Patagonia and Vincent Stanley who was a sometimes Patagonia employee. In their book, they raise the point that no companies could be found in this world, but they are doing the best job to protect their stockholders. This book is really helpful for those people who wants to become more successful in their business career life. It shows us what the company has studied and what strategies has used although the book is not really about the story of the Patagonia company.

The Rose Company is building a new plant to reduce cost, improve the quality of products, and maintain competitive leadership by gaining a slight production advantage. The main obstacles to be overcome are the commissioning of a new plant, new methods and process, and administrative reporting issues. As the newly hired General Plant Manager, I plan to resolve these issues by insisting that all plant communications flow through me, instituting training for plant personnel and setting operational expectations.

The investigation brought about the dissolution of the firm. Mr. Lomanno became fearful that this investigation would expose his embezzlement scheme. He decided to seek legal advice and he contacted a criminal attorney. The matter was taken up with the office of the US Attorney. He confessed for all his wrong doings and was offered a plea bargain which had a condition that he file his returns for the year 1986, 1987, and 1988 which had not being filed. The income from embezzlement was reported as “other income” and was in tunes of $45,007 for 1987 and $15,005 for 1988. Because he did not want the petitioner to know about this, he prepared the returns alone and tried to hand them in unsigned. The officers saw the unsigned part and wanted it signed. He went ahead and forged the signature of the petitioner. The petitioner came to learn of her husband’s embezzlement in the year 1990 through a probation officer and through a letter received from IRS revenue agent. The couple divorced in 1991. Mrs. Lomanno petitioned to be exempted from the tax return payments. In this case, the petitioner filed a subject motion for attorney’s fees and litigation costs.

As shareholders of VAFLA Corporation, an S corporation, the appellants claimed deductions to reflect the corporation’s operating losses. The commissioner disallowed deductions above the $10,000 bases from original investment. The appellants contend that the adjusted basis in their stock should be increased to reflect a $300,000 loan. The loan was obtained by VAFLA from bank and was guaranteed by the shareholder-guarantors. VAFLA made all of the loan payments, principals and interest to the bank and the appellants did not. Neither VAFLA nor the shareholder-guarantors treated the loan as constructive income taxable to the shareholder-guarantors.

Sale of rental property does not qualify for exclusion 121 because the two year resident occupation limit cannot be satisfied in income producing business property. The sale will fall under section 1231 which encompasses transactions of sales or exchanges of business property held for longer than one year. In order to determine treatment of section 1231 you must combine all section 1231 gains and losses for the year. A net loss is an ordinary loss. A net gain is ordinary income up to the amount of your non-recaptured section 1231 losses from previous years. Any remaining balance becomes a long-term capital gain. The formula for calculating gain or loss involves subtracting the cost basis from the selling price. If you have taken depreciation on the property in the past and are

The log maintained by the couple indicates that the couple used 14 guaranteed personal days. If even 1 out of the 28 days that the couple partially or fully worked on the house is considered a personal day than the 14-day provision is violated. However, if none of those days turn out to be considered personal days then the loss in excess over rental income can be deducted according to section 280A. Section 183(a) permits no allowable deductions for activities not found to be engaged in for profit. However, we found that the Harrell’s activities are found to be engaged in for profit and should therefore be allowed these deductions.

Since we had been doing business with her for over 12 years, we felt that she would receive all the proper training, and we never doubted her skills. Then within the last couple of years, we started detecting our income tax returns would take longer, not knowing why, so we would

With the signing of the Treaty of Big Tree, Morris transferred the title to 3.3 million acres of land in western New York to the Holland Land Company. Theophilus Cazenove, the Agent-General of the Holland Land Company, hired Joseph Ellicott as Chief Surveyor in July 1797. Ellicott's experience included surveying the company's land in northwestern Pennsylvania. After extinguishing the Seneca Indians' claim to the land at Big Tree, Ellicott's objectives for the survey were to lay out the 3.3 million acres of company land, arrange the specific boundaries for the Seneca Indian Reservations and subdivide all the towns into six square miles. Where the land and its various features permitted, counties were divided into townships measuring six miles

My clients, Charlene and Alton Dutro, have lived in their home for two and one-half years. However, the Dutros choose to remodel and enlarge their house. Consequently, their architect cautioned that increasingly strict building and permit restrictions had been in effect since a decade ago when the house was built. As a result, the Dutros decided to demolish their house and rebuild on the property. They did not reside in the house but instead sold it and realized a gain of over $500,000. For calculation on their Federal income tax return, the Dutros reduced the realized gain that exceeded the $500,000 by the $500,000 exclusion of § 121. The IRS issued an income tax deficiency notice because they noted that the Dutros did not satisfy the two-out-of-five years requirement under § 121 (a). Consequently, the present issue is to determine who is correct in this situation. Therefore, I must ascertain if the Dutros satisfied this requirement under § 121 (a).

deduction in its draft tax return, resulting in a $40 reduction to taxes payable. There is uncertainty over

is a small, two-person accounting firm offering traditional tax preparation services. We will also provide financial planning advisement services to individuals. The firm is owned and run by Shaniqua Brown, prospective CPA in Newark, DE. The second employee of BATS is Sonya Brown, mother of Shaniqua Brown, who will serve as the receptionist and answer all incoming phone calls and schedule all appointments. We will service the needs of individuals as well as small businesses. The firm offers tax accounting, management accounting, and QuickBooks set-up and training courses for small business clients. Initially, the majority of BAT’S business will be generated from individuals but as revenue increases, more sales will come from

o Weakness: there is a societal imbalance in the distribution of resources, and it is virtually impossible for courts/legislatures to make important decisions that do not make someone worse off

Riggers Inc (“Riggers, “client, or “Company”) is audited by Stone LLC CPA firm (“Stone” or “auditor”). The Compa” ” ny builds and owns offshore drilling rigs. Riggers is a US-based corporation that recently expanded its operations into Brazil (the only foreign-based operations for Riggers). As a result of this expansion, the client has encountered two complex issues related to accounting for income taxes. During the 2012 year-end audit, the auditors must use professional judgment with regard to these two income tax accounting issues. The first issue relates to

1. Assume there are three separate real estate companies US Realty (which uses the cost model), UK Realty (which uses the revaluation model, and International Realty (which uses the fair value model). Assume that on December 31, 2003, each company pays £1,000 cash to obtain investment property comprising of land with negligible value and an office building worth £1,000.  The building has a 10 year useful life, has no residual value, and is expected to provide a constant stream of economic benefits over time.   What is the accounting entry for each company for the following four scenarios:

The Salomon principle dictates that if the company is established in accordance with the requirements of the Companies Act 2006, it starts to operate as a separate legal entity. The corporate veil becomes the dividing line between this entity and its shareholders. However, it soon became obvious that this concept can be easily abused, therefore Courts fought hard in order to establish exceptions to the Salomon principle in the form of lifting or piercing the veil, allowing them to look behind the ‘curtain’ if they spot some irregularity. In order to justify these drastic measures, Courts would look for something substantive, such as an agency relationship, fraud, avoidance of obligations, or group piercing grounds. In order to determine