Paper , Order, or Assignment Requirements
A
1 You are the tax director for a FORTUNE 500 company and the new CFO comes to you and asks you what ASC 740 is? He also asks you to tell him what a deferred tax asset is and when it can be reflected on the company’s books without applying a valuation allowance?
2 You are a CPA in private practice and your client asks you to explain what an apportionment factor is for multi-state income tax purposes.
3 You are a CPA in private practice and your client which is a non-profit entity wants you to explain when the Unrelated Business Income Tax could apply to their operations.
B
You are the Tax Director in a FORTUNE 500 company. There is a new CFO and he comes to your office and asks the following:
“I understand that there are ways to shift income between taxpayers using management fees and royalty payments. He further stated that it was his understanding that the same techniques could be used to minimize both state tax and international tax liabilities.”
Please draft a double-spaced memo that is at least one full page responding to the questions posed by the CFO. Please mention transfer pricing and Code Section 482.
C
Please fully answer the following:
1 What is a 501(c)(3) organization? Does this type of organization pay income taxes?
2 What does the term three-factor formula refer two?
3 What are we referring to when we say that we start with federal taxable income to arrive at a specific state taxable income?
4 What is a valuation allowance when it comes to booking deferred tax assets on a balance sheet?
5 What happens if a company has deferred tax liabilities and the corporate tax rate is reduced by statute?
D
