Chapter 7, Problem 28E

The canon of _________ advocates that a tax has to be contrived as a mechanism that takes as little as possible out of the pockets of the people and to pay as little as possible over and above what it brings into the public treasury of the state. A.Convenience B.Certainty C.Equity D.Economy

Please provide the accurate answer to this general accounting problem using valid techniques.

All of the following are applicable in determining corporate domicile when claiming diversity jurisdiction except: A.the place where high level officials meet for activities B.the place where the coordination of corporate strategy and daily activities are carried out C.the place where cardinal activities of business are carried out D.the place where the corporation makes most of its profits

Calculate the net profit

The Tax Authority has the power to make an assessment, to the best of its judgment, in all but one of the following circumstances: A.Where the taxpayer has not filed a return B.When the tax authority has to compare previous tax returns filed by the taxpayer to  industry standards in making their assessment C.When documents exist to accurately compute the tax liability D.If the department considers that the taxpayer has not declared all of their revenue

Can you solve this general accounting problem using accurate calculation methods?

Ans

I am searching for the accurate solution to this general accounting problem with the right approach.

1. Jack Fields opened his place of business in Jamaica at 8:00 am. Within fifteen minutes of opening, the tax authorities appeared with a search warrant to enter and search the premises and to detain and remove business documents. On what ground could Jack deny the tax authorities entry to his premises? A.The search took place within one month from the date the search warrant was issued. B.The warrant was signed by a judge and should have been signed by the commissioner. C.The tax authorities can only enter the premises between nine in the morning and nine at night to conduct a search. D.Tax authorities do not have the power to enter, search and remove his business documents.   2. All of the following are generally non-deductible expenses except: A.Expenses in connection with the acquisition or disposal of a capital asset B.Principal portion of finance lease C.Interest paid or credited to a partners’ capital account D.Expenditure incurred on behalf of connected persons where there is…