Tuff Industrial Products is a limited liability company taxable as a partnership. TIP manufactures valves and hoses used in industrial equipment. TIP was formed on April 3, 2022. You are approached by the principals of TIP for tax advice - specifically, they want to know what year - end they should adopt and what method of accounting should be used for tax purposes. What information do you need from TIP to properly address their questions? What general advice can you give them?

fleming inc is a c corporation that files its return using a fiscal year. for the return for the fiscal year ending April 30 2019. what corporate tax rates apply to  flemings income

Petroleum, Inc. is in need of tax consulting services and wants to engage an accounting firm to perform these services on its behalf. The following events have occurred: On December 1, Petroleum, Inc., sent Brick, Waterhouse, & Co. (BW&C) a letter, via overnight delivery, offering to engage BW&C to review Petroleum’s tax situation for the current year for $10,000. In the letter, the company stated that BW&C had ten days to accept. On December 5, BW&C sent an e-mail message that stated, “The price for the tax analysis seems too low. We remain interested in the engagement. Would you consider paying $15,000?” Petroleum received the message without responding immediately. The next day, Smith & Taylor, a BW&C competitor, offered to conduct the tax services for $8,000. On learning of this offer, BW&C immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why BW&C and Petroleum do, or do…

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As a tax consultant you receive on continuous basis inquiries and tax forms from your clients. Following are independent inquires that you have to check and reply back to your clients. For each enquiry below and listed 1 to 4, comment on whether the given calculations are correct or not, explain your answer and give the correct calculations by showing your workings if you disagree. 1. Jurisdiction A imposes income tax on businesses. The income tax is equal to 1% of income up to $ 200,000 and 1.5% of income in excess of $200,000. Nasha Company reported $1,564,000 net income for the year ended December 2020. Nasha's accountant reported an income tax of $23,460. 2. Taxpayer D has taxable income of $172,450. He operates in a Jurisdiction where the tax equals 10% of the first $34,000, 15% from $34,001 to $138,000 and 25% in excess of $138,000. Taxpayer D believes that his average tax rate equals his marginal tax rate of 25%. 3. Taxpayer E lives in a jurisdiction which impose 15% individual…

Check my answer. Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed? Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.

Beta Corporation (the Company), which is an environmental service company, is taxed as a C Corporation and has a calendar accounting period. The Company files its income tax return (form 1120) on the accrual method of accounting. The Company's gross receipts for each of the years ended December 31, 2018-2020 have exceeded $50 million dollars and the Company is not otherwise exempted from the requirements of IRC Sec 163(j). The Company's trial balance for the year ended December 31, 2021, is as follows. Note: The Company does not have any floor plan financing interest expense and the Company files income tax returns in Virginia only and the tax rate in Virginia is a flat 6%. Beta Corporation Trial Balance 12.31.21 Debit Credit Cash 25,000 Accounts receivable 230,000 Equipment Accumulated depreciation 1,750,000 1,750,000 Intangible assets 145.000 Accumulated amortization 14,500 Accounts payable Notes payable bank 45,000 2,000,000 Common Stock 5,000 Retained earnings 1,777,000 Sales…

Which of the following taxpayers may claim a deduction for qualified business income? a. A driver for Uber or Lyft. b. A vetenarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food and supplies and from the boarding of animals.  c. A CPA operating as an LLC taxed as a sole proprietorship. The CPA is single and has taxable income of $150,000. d. Same as part(c), except the CPA has taxable income of $200,000 e. A real estate salesperson. f. A pet sitter/ dog walker. g. A sole proprietor software developer. h. An individual wage earner who derives $60,000 of rental income from a duplex she owns.

In 2021, a company performed service for the customers. It will receive payments from the customers in 2022. At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer). 1. record a deferred tax asset. 2. record a deferred tax liability. 3. have a permanent difference in pretax financial income and taxable income for 2021. 4. have no differences in pretax financial income and taxable income for 2021.

Jamie is an employee of LMN Corporation. He also sits on the board of directors of the organization. What method will be used to calculate the income tax on his director's fees?   Lump-sum tax method   Retroactive tax method   Bonus tax method   Regular pay period deduction method