A and B form the equal AB partnership. A is a cash basis individual taxpayer and B is an accrual basis taxpayer. As an individual, long-term capital gains will be taxed at a preferential rate for A. The AB partnership expects to have equal amounts of ordinary income and capital gains every year. The partnership agreement provides that A will be allocated all of the capital gains and B will be allocated all of the ordinary income. Capital accounts are properly maintained, any distributions in liquidation will be made in accordance with each partners capital account, and both partners are required to restore deficit capital accounts upon liquidation. Will this allocation have substantial economic effect? A/ A Why or why not?

Jack, a stockbroker, was an inexperienced in tax. He has sought the advice of an independent designated tax professional to advise him on tax planning and tax shelter that he needs. Simon, who is a designated accountant who specialized in those areas, advised Jack to invest in a number of multiple unit residential building (MURBs), a real estate investment project as tax shelter, by the conventional wisdom, were safe and conservative. When the value of MURBs fell during a decline in the real estate market, Jack lost heavily in his investment. Though the advice was perfectly sound at the time it was given, but unknown to Jack, Simon was also acting as adviser for developers in restructuring the MURBs and did not disclose that fact to Jack. In the context of breach of contract, is Jack liable for the loss of investment? In the context of breach of fiduciary duty, is Jack liable as well? Does ethics issue involve? Please state your reasons. Mr. Hunt, who has just retired, set up an…

‘A holder in due course gets a better title free from equities’. Explain the statement and discuss the various privileges of a holder in due course.

Jack, a stockbroker, was an inexperienced in tax. He has sought the advice of an independent designated tax professional to advise him on tax planning and tax shelter that he needs. Simon, who is a designated accountant who specialized in those areas, advised Jack to invest in a number of multiple unit residential building (MURBs), a real estate investment project as tax shelter, by the conventional wisdom, were safe and conservative. When the value of MURBs fell during a decline in the real estate market, Jack lost heavily in his investment. Though the advice was perfectly sound at the time it was given, but unknown to Jack, Simon was also acting as adviser for developers in restructuring the MURBs and did not disclose that fact to Jack.  In the context of breach of contract, is Jack liable for the loss of investment? In the context of breach of fiduciary duty, is Jack liable as well? Does ethics issue involve? Please state your reasons.   Mr. Hunt, who has just retired, set up an…

What elements determine firm performance?  Explain.

Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near the beach, so they have a special insurance policy to protect their assets. Business has been slow as fewer large beach weddings are taking place, so Skip and Jack use a large fan to blow down and damage most of their décor assets, some of which were personal assets of Skip and Jack, to collect the insurance benefits. (a) Assuming their acts are proven, will a court allow Skip and Jack to recover the insurance money? (b) Is this a situation where the corporate veil may be pierced? Why or why not? (c) What would it mean for Skip and Jack if the corporate veil is pierced in this situation?

subject; accouting

What is a continuation agreement? Why is it important in an LLP?

A company declared a $ 10.00 per share cash dividend. The company had 100,000 shares authorized, 75,000 shares issued, and 10,000 shares of Treasury Stock. What is the journal entry to record the declaration of this cash dividend?

Janice's Juices, LLC is a single-member LLC that was created and began business on January 1, 2022. Due to an oversight, no S election (or other entity classification election) was made by the regular deadline to make an election for 2022. Assuming the business otherwise qualifies to request late S corporation election relief, it must file Form 2553 by which date?