MGMR ACCT F/MANAGERS-CONNECT 180-DAY COD
5th Edition
ISBN: 9781265951627
Author: Noreen
Publisher: MCG
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Textbook Question
Chapter P, Problem P.13E
Ethics and Decision Making
Assume that you just completed a December weekend vacation to a casino within the United States. During your trip you won $10,000 gambling. When the casino exchanged your chips for cash they did not record any personal information, such as your driver’s license number or social security number. Four months later while preparing your tax returns for the prior year, you stop to contemplate the fact that the Internal Revenue Service requires taxpayers to report all gambling winnings on Form 1040.
Required:
Would you report your gambling winnings to the Internal Revenue Service so that you could pay federal income taxes on those winnings? Do you believe that your actions are ethical? Why?
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Assume that you just completed a December weekend vacation to a resort
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for the prior year, you stop to contemplate the fact that the Bureau of Internal
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Required: Would you report your gambling winnings to the Bureau of
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You are the junior accountant at CBW Bank. You have been asked to assist with the 30 June 2022 tax work: As part of the bank manager’s contract she was provided with a BMW luxury motor vehicle for her work travel. The contract for the provision of the car was entered into on 1 January 2020. The bank manager is permitted to take the car home at the end of the day and there is no restriction on her use of the car for non-work purposes. The car was originally acquired by the bank on 1 January 2019. The cost of the car was $90,000. Other details regarding the car are as follows: Petrol and oil $6,000 Registration $2,000 Insurance $1,800 Repairs and Maintenance $1,000 Speeding fine $600 The manager is required to contribute $100 per month. The car travelled 50,000 km for the year FBT year. Of these, 30,000 km related to business travel. Required: Calculate FBT liability for the car based on the most effective tax method. Type your answer in the space provided.
You are a CPA and do tax returns for individuals. A woman enters your office and asks you to complete her tax return. During your meeting, she mentions that she is expecting about $5000 in refund, and needs that to pay off a debt, that will result in a $1000 fine if she does not pay in the next month. You complete her tax return, but the refund is much lower than she expected, only $1000. She is very mad, and consults with another CPA. The other CPA determines that you made a significant mistake, but the period to file returns has passed. It will cost $500 to file an amendment. What damages is the woman likely entitled to?
Group of answer choices
A. None, because accountants can't be perfect
B. $500, because that is all that is needed to make it right
C. $500, and potentially $1000, because of the consequential damages of not being able to pay off her loan on time
D. $4000, because that is the difference between the proper refund and your mistake.
Chapter P Solutions
MGMR ACCT F/MANAGERS-CONNECT 180-DAY COD
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