MAT Case Study

The core of business activity is to gain profit. As these profits are earned form ordinary business activities, the profits are categorised as ordinary income for the business. However, there are some cases and scenarios where the business activity may include courses of actions that are not usual for the business nature. Here, we tried to find the consistency of ordinary income and the proceeds from these unusual business decisions.

(c)The net assets in their 2013 statements of financial position is the same dollar value as the total equity.

Assets are to be recorded and valued based of the type of asset there are.

Discuss the internal Revenue Code: The internal revenue code is a main statutory authority that formed in 1986, known as the code. It has the same authoritative weight as tax treaties and supreme court rulings. The internal revenue code is very different than the other authority all administrative and judicial except tax treaties and constitution which seems to clarification of it. in the Internal Revenue code, every year congress tends to pass legislature that changes the code. The Internal revenue code is separated into subtitles, chapters, subchapters, parts, subparts and sections. However, whenever the researcher referring a tax law, they generally are referring to the law that is simply by its code sections, which are numbered from 1 to 9834 with gaps in the section umbers to allow new code sections to be added to the appropriate parts of the code as needed. It is very important that we understand the organization of code section in order for us to cite the respective law correctly. Therefore, if we do not understand the organization of the code, it will be very difficult for us to interpret the code section and to regulate its relevancy to a research

More important, the numbers used where E= $17054(permanently restricted assets + unrestricted assets), A= $44160(from total assets), D= $27106(Total liabilities and net assets – equity), Rd= 4.86, Re= 10, and T= 0

This paper explores the different types of nonliquidating distributions and how they distributed to shareholder in a corporation from research collected online (Internet) and offline (non-Internet). The online research was done using sites including the IRS website, ProQuest and EBSCOhost. The majority of the offline was done using the textbook McGraw-Hill’s Taxation of Business Entities: 2016 Edition. The different types of nonliquidating distributions includes property distribution, dividend from earnings and profits, constructive dividends, stock redemptions, and partial liquidation. Form 1099-DIV will be shown in the appendix to show the distribution of dividend to shareholders. The research indicated that each type of nonliquidating distribution is important to the corporation. The purpose of this paper is to give a general overview of how companies handle nonliquidating distributions throughout the year and to provide an explanation of the distributions.

3、Describe the relevant provisions of fair value accounting under SFAS 157(ASC 820). What does a measure like net income mean as a firm moves towards increasing use of fair value accounting (as opposed to historical cost of assets)?

Total current assets of the company shows an ambiguous trend but it shows remarkable increase in some years. During 7 year period from 2007 to 2014, total assets of college grew by only 12%. The main reason for ambiguous trend of total assets is cash and cash equivalents, but it

Current assets: 2011 Cash and cash equivalents Short-term investments Accounts receivable Prepaid expenses and deposits Loan receivable (note 2) Derivative financial instrument - short term Restricted cash and cash equivalents (note 3) Other assets Capital assets (note 4) $ 13,397 4,130 12,325 17,091 4,290 1,352 52,585 11,808 – 264,350 $ 2010 10,420 10,772 1,739 75,992 – 1,544 100,467 113,040

The fair value of an asset is defined as ‘the price that would be received to sell an asset paid to transfer a liability in an orderly transaction between market participants at the measurement date” (Kieso, Weygandt, & Warfield, 2012). It is a market based measure (Averkamp, 2014). Over the past few years, Generally Accepted Accounting Principles has called for the use of fair value measurement in a company’s financial statements. This is what is referred to as the fair value principle (Kieso, Weygandt, & Warfield, 2012). The fair value of an asset or liability is based on an estimate of what the asset should be worth at the time of sale. This gives rise to some conflict among accounting professionals. It is believed that fair value may not be as accurate

A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the noncontrolling shareholders.

It is important to report their capital assets as similarly to business in the government-wide statements, but governments need to improve on providing correct and adequate information for the government leaders. GASB No. 34 requires capital assets report, and it needs to be reported in the applicable governmental or business-type activities columns in the government-wide financial statements. According to Hegar (2016), capital assets are those defined by the state as assets with an initial cost meeting the thresholds

Today’s economy was founded upon the fundamentals of capitalism and continues to find its strength in the presence of freedom of enterprise and trade. Regulation and taxes are vital in order to support fairness amongst businesses and to provide funds for the government to develop and maintain the country’s infrastructure. Most companies distribute some of the company’s accumulated profits, so that is why it is important to characterize the distribution under whether it is deductible or not. As there are many different types of distributions, it is necessary for the tax paying entity to understand the distribution so that each type can be deducted appropriately.

To arrive at a total company value, or enterprise value, we simply have to take the present value of the cash flows and the Terminal value, divide them by the discount rate and, finally, add up the results. If we are discounting free cash flow of the firm at the weighted average cost of capital, this would give the value of the firm, so it would be necessary to deduct net debt in order to arrive at the equity value. In this report, simply use FCF in the year of 2011 to compare the value of the firm to the stock price in the year end of 2011.

India is now one the most highly taxed countries of the world .Almost every conceivable source of tax revenue has been bought into the tax system .The ratio of tax revenue to national income has increased to 23% .Over the years both direct and indirect taxes have become more and more progressive in general .In so far as income inequality is concerned the progression infused into the system has helped reducing gap between the rich and the poor to some extent .The reduction of marginal icome tax rate though appears to be competitive to progressivley in tax structure has in effect helped reduction of inequality indirectly through larger compliance and discouragement of tax evasion among the rich people The increase of exemption limit has