To: Teresita Brunken
From: Claudia Carbajal
RE: Mickey and Minnie
Facts
Mickey and Minnie are individuals who have an amazing story of their life. Their story is so interesting that a magazine named, Disney Films, is interested in publishing the said story through books, film and photos. The Firm has offered Mickey and Minnie Rs. $750,000 as a price for using the said story in publication.
Issue and Conclusion 1
Under which category the income of Mickey and Minnie might be taxed and treated that they have received from The Firm?
Income received by Mickey and Minnie might be taxed as royalty income earned by them in the capacity individual taxpayer.
Analysis 1
As per Reg. Sec. 1.269-1(a)(3) person includes an individual, a trust, an
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Resultantly, Mickey and Minnie have a story related to their life and someone else will earn profit by publishing their story. As per IRS code if a taxpayer own an intangible property or right including a work of art or literature, patents, goodwill, licenses or any thing received earned as part of arrangement for any contractual display of artistic work that is owned by the tax payer that that he allows others its use and consequently the taxpayer receive amount from that other person, same shall be treated as royalty income. As Mickey and Minnie have received payments for use of intangible work having their right on it therefore, their income might be treated as a royalty income derived from the use of their property. A royalty payment must relate to the use of a valuable right that is owned by taxpayers or have right on it.
Furthermore, according to the IRS, tax must be paid on such royalty income. However, certain types of royalties are given reduced rates or exemptions under certain conditions. Accordingly, these different types of royalties are treated as separate categories for tax purposes.
Issue and Conclusion 2
Tax treatment of royalty income varies according many factors, including whether the royalty is received as self-employment income or from creative work that is a trade or a business. Taking in account Sec. 469 (e)(1)(A) IRS
Since the 1930’s, the Walt Disney Company is known for producing characters, images, as well as stories which have created happiness for audiences around the world. This corporation has grown from a small cartoon studio run by famous Walt and Roy Disney to a million dollar business. In Janet Wasko’s novel, “Understanding Disney”, Wasko explains Disney as corporation calling it “The Disney Empire”. Throughout her novel, Wasko argues that Disney is set up like a typical profit seeking corporation, as well as creates and manufactures fantasy, and lastly re-invents folk tales by “Americanising” them.
Longer copyright terms can prove beneficial for large mass media companies as evidenced by The Walt Disney Company’s lobbying for the Copyright Term Extension Act. This act, often dubbed the Mickey Mouse Protection Act, extended copyright protection for an additional twenty years in 1998. Consequently, Mickey Mouse is now set to enter the public domain on January 1, 2024. Disney will once again have the opportunity to lobby for extension and evade Mickey’s copyright expiration, thus preventing its most iconic character from entering the public domain. This holds pressing significance because lobbying for further extension legislation would likely occur within the next few years.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
Disney used the character of Mickey Mouse and others to create movies that customers enjoyed like “Beauty and the Beast” while Pixar was producing made up animated characters to create films like “Cars” and “Wall-E”. Disney was creating animated movies but struggling to generate the amount of money Pixar was making on producing only one movie a year. Disney wanted to grow in creating more animated movies and decided to buy out Pixar in 2006 for $7.4 million dollars. (Barnes, 2008) According to Disney’s CEO Robert
The ideology of a successful life is forced on citizens from childhood. Cartoons are made by corporations to illustrate how people should act in society and set standards on “the way to live”. Mickey Mouse is an example of this because he has transformed into the pleasant face of all of Disney has branched into the lives of so many children around the world, bringing them cheer and joy in the comfort of their homes. These ideals are stored and used to comprehend every other social conformity from childhood to adulthood. Even R.O. Dent resonates with the happiness felt by the many children of the world and thinks of Mickey as an innocent mouse
The Walt Disney Company is a large conglomerate best known for its classic animated movies and multi-national amusement parks. What most people don’t realize is however, is how much Disney owns, including: theater and music production companies, retail locations, a cruise line, Marvel, Lucas films, Pixar, ABC, ESPN, and more. According to Walt Disney Studios, the company was founded in Los Angeles in 1923 by brothers Roy and Walt Disney, however they did not see their first major success until the release of Snow White and the Seven Dwarves in 1937. Through the 1930s and 1940s, Disney continued to make popular animated films such as Fantasia and Bambi; they also produced propaganda films for the US government during the second world war.
He and his enterprise displayed fantasy, innocence, warmth and resilience to people all over the country and even the world, and to many he was portrayed as a positive symbol to represent the American way of life. Additionally, Mickey Mouse, arguably the most famous and loved of Disney’s creations, played an important role in American culture. Mickey Mouse Clubs became popular after the television show aired in the ‘50s, and enabled youth to become more involved in film and excitable about art in general. In fact, Disney helped pave the way for similar organizations, as he envisioned the possibilities of a national network of them. In addition to impacting American culture by intriguing young audiences, he also changed the daily lives of many U.S. citizens. As manufacturing and the growth of a consumer economy made it all the more possible to do less laborious work, Americans had more leisure time. Disney took advantage of this. The Wall Street Journal published an article in which they showed how his efforts in filmmaking, television, commercials, merchandising and licensing, publications, comic strips, etc. had the ability to project one another before consumers. People at home had more time on their hands, so seeing this sudden increase in Disney’s business efforts motivated them to become more
He also correctly predicted that television would be an important medium, and introduced the highly popular “Mickey Mouse Club” in 1955. Finally, Disney correctly bet big on entering theme parks with Disneyland in 1955. Imperfect Mobility and Co-specialization Disney’s strong legal protection makes it nearly impossible for competitors to copy or imitate Disney’s characters. In addition, the parts comprising the Disney whole would be of less valuable to a poacher than they are to Disney. This is because, for Disney, the sum of the parts is greater than the whole. In a word, synergy. Even if a competitor succeeded in hiring away key talent, for example, the competitor would still lack the tradition, culture, and complementary assets that make up Disney. Synergy Disney has mastered the art of the cross-sell. It has done so by leveraging its characters and carefully controlling its image, driving toward a unified, highly valued customer experience. An example best illustrates this. Consider a typical multi-day family trip to Disney World. A family books lodging months in advance at a hotel inside the park. It does so because it knows that the hotel has the best location, is highly demanded, and will provide good hospitality. Being lodged inside the park, the family eats at Disney-owned restaurants and perhaps buys Disney merchandise. All the while the family willing
When the subject of the Disney Enterprises is brought up, one often thinks of cartoons, musicals or other movies, amusement parks, and famous characters such as Mickey Mouse.
Disney Productions is one of the leading entertainment businesses, bringing tremendous profits not to mention the joy it brings many people. It has not always been this easy for Disney however. It took the mind of one man to bring it to what it is today, and that’s mans name is Walt Disney. Walt Disney’s life was devoted to the arts and entertainment almost from birth. However, Walt’s fortunes and fame didn’t take form until his creation of Mickey Mouse.
Mickey Mouse Monopoly appeals to pathos when they discuss Disney’s influence on children and interview children and their insights on various Disney films, showing how sociological ideas presented in Disney films effect the cultural development of children. This is really directed at parents and people who want to be parents as it makes them think about all the issues Mickey Mouse Monopoly is bringing to light. Justin Lewis, a university professor, points out that Disney is so large and spread out globally, that its stories “will be the stories that will form and help form a child’s imaginary world, all over the world, and that’s an incredible amount of power, enormous amount of power” (Mickey Mouse Monopoly). He continues to say that we should question what Disney is teaching and what children are learning from their films. He uses rhetorical question to strengthen his point, asking if “these [are] the stories we really want our children to hear” (Mickey Mouse Monopoly). He brings to light that if those kinds of questions aren’t being asked, then people are allowing Disney to shape the imaginations of millions of children. This really sets up the film’s discussion on the influence Disney has on children. By introducing this part of
After losing everything, Walt and Ubbe decided to create another cartoon character now known as Mickey. After creating a series of short cartoons Mickey became the world’s most popular cartoon character in the 1930s. Walt created his first full-length animated musical feature in the production of “Snow White and the Seven Dwarfs” which exceeded over $1,400,000 in profit (IMDb, 2010). Throughout 1937-1947 he continued to create full-length movies such as “Pinocchio”, “Fantasia”, “Dumbo”, and “Bambi”. Following his cartoon success, Walt
Each of these divisions that Disney owns and operates are leaders in their respective industries and capitalize multiple channels that have been created to additional products and other tangible goods account for 10% of Walt Disney’s revenue.
The Walt Disney Company, also known as Disney, is a multinational mass media and entertainment conglomerate. The history of Disney dates back all the way back to 1923. The main character of this company is a mouse, Mickey Mouse. Disney is the world’s largest media conglomerate, its assets include movies, television, publishing,
As Walt Disney Company is famed for its creativity and strong global brand, Disney appear to create value in its business primarily through a differentiation strategy.