¶ … University has offered its professor $200,000 in order to relinquish tenure and resign. In particular, the aspect to consider is the tax consequence of such compensation. The professor's standpoint is that tenure should be treated as an intangible capital asset, and relinquishing tenure ought to be a long-term capital gain. The main tax issue in this case is whether the relinquishment of tenure encompasses a sale or interchange of a capital asset, which qualifies to be treated as long-term capital gains or should it be treated as ordinary income. The paper will look at cases that have addressed this issue and come up with different ways in which this issue should be treated. This particular issue was directly addressed in the Foote vs. Commissioner case. The ruling made by the taxation court implied that the tenure does not classify as a capital asset and therefore the relinquishment of tenure by the taxpayer cannot be a sale or give-and-take (Leagle, 2016). Devoid of these two requirements for capital gains treatment, the court made the ruling that the payment ought to be treated and taxed as ordinary income. However, in accordance to Everett et al. (2005), by laying emphasis on the substitute for ordinary...
More so, in the Merrill J. Foote v. Commissioner case, the petitioner as well as the tax court overlooked the justifiable interest theory that was developed in the Commissioner v. Ferrer case. With respect to this case, the court made the ruling that the payment for the relinquishment of the royalty interest in the movie rights was taxed as ordinary income, for the reason that these constituted an alternative for ordinary income (Everett et al., 2005).
Information System holds in Accounting Industry's future? Looking through the glass and estimating what the future holds for any individual or profession is always a difficult exercise as the trends in any business or profession may change and so the path of development. It is better to look at the experience of some companies whose systems have changed over the past few years and thus try to estimate what is
Ned and Marge's Taxes Ned and Marge Childcare Transactions and Taxation Ned, Marge Thank you for your concern for accurately reporting taxes for this previous tax year. In the following response, your specific cases have been considered. As Ned has been paid in the amount of $95,000 by Marge for childcare for Maggie, under IRS regulations, if Ned babysits for relatives or neighborhood children, whether on a regular basis or only periodically, the rules
International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles (U.S. GAAP) US GAAP is the general accounting principles, standard, and procedures that the U.S. companies follow to prepare their financial statements. GAAP has combination of accepted standards that the companies should follow when recording and reporting their accounting information. For example, GAAP has set up the rules that companies should follow when preparing the financial data such as balance sheet, revenue recognition,
This is as long as such as move would not in any way compromises the safety as well as promptness of a thorough investigation.The verbal as well as written document shall in this case be restricted to the persons responsible for the receiving, responding and investigating the complaint. All complaints that relate to criminal behavior shall be appropriately referred to the relevant law enforcement agency. The complaint procedure 1. Protest as
White Collar Entrepreneurial Crime Allen Stanford Briefly describe the entrepreneurial crime you researched. In 2009, the Antigua/Texas-based global financial group (which was made up several subsidiaries that were owned by the same investment firm) owned by R. Allen Stanford was charged with scamming their customers by the Securities and Exchange Commission. Stanford Financial Group was charged with fraud on the basis that they deceptively sold consumers over seven billion dollars in deposit certificates. The
.....project management approach is increasingly becoming popular in today's workplace. Organisations are ever more recognising the benefits of accomplishing tasks and activities as projects -- better task coordination, quicker task execution, and so on (Larson et al., 2013). The author's organisation, a renewable energy firm with operations in Australia and beyond, has particularly been shifting to the project management approach in recent years. The organisation is currently interested in acquiring
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