Question: HIRAM IS A CPA, LICENSED IN THE STATE OF VIRGINIA. HE PERFORMS TAX SERVICES FOR HIS CLIENTS. HE WORKS ON A LARGE IRS AUDIT FOR HIS CLIENT JEREMY, WHOSE BUSINESS IS IN DC, AND SUCCESSFULLY RESOLVES THE CASE, SAVING JEREMY A LOT OF MONEY. HIRAM SENDS A BILL TO JEREMY FOR $10,000. JEREMY REFUSES TO PAY BECAUSE IT TURNS OUT HIRAM IS NOT LICENSED TO BE A CPA IN DC AND HAS NOT PAID THE LICENSE FEE. HIRAM SUES JEREMY FOR THE FEE. WHO WILL PREVAIL? WHY? WHAT ADDITIONAL FACTS, IF ANY, DO YOU NEED TO KNOW? ADDRESS ALL THE ISSUES THAT ARE PRESENT. YOUR ANSWER SHOULD BE AT LEAST 100 WORDS. (THIS PROBLEM IS 112 WORDS).LARRY IS A TAX ACCOUNTANT AND SHEILA IS A HAIRDRESSER. LARRY PREPARES SHEILA S TAX RETURN FOR FREE AND SHEILA AGREES TO STYLE LARRY S HAIR SIX TIMES FOR FREE IN RETURN FOR THE TAX RETURN. THE VALUE OF THE TAX RETURN IS APPROXIMATELY $300 AND THE HAIR STYLING WORK IS APPROXIMATELY $300.A. HOW MUCH OF THE $300 IS INCLUDABLE INCOME TO LARRY? WHY?B. HOW MUCH OF THE $300 IS INCLUDABLE INCOME TO SHEILA? WHY?FOR EACH OF THE FOLLOWING MANAGERS, DESCRIBE HOW MANAGERIAL ACCOUNTING COULD BE USED TO SATISFY STRATEGIC OR OPERATIONAL OBJECTIVES:1. THE VICE PRESIDENT OF THE INFORMATION SYSTEMS DIVISION OF A BANK.2. A HOSPITAL ADMINISTRATOR.3. THE CHIEF EXECUTIVE OFFICER OF A FOOD COMPANY. THE FOOD COMPANY IS DIVIDED INTO THREE DIVISIONS: NONALCOHOLIC BEVERAGES, SNACK FOODS, AND FAST FOOD RESTAURANTS.4. THE MANAGER OF THE LOCAL CAMPUS COPY SHOP.

T uses frequent flyer miles to take his family on a vacation. T received the miles duringbusiness travel paid for by his employer. The normal airfare for his vacation wouldhave cost $7,000.a. T must realize and recognize $7,000 as income.b. Although T has realized income, he will not be required to recognize it becausethe IRS has chosen, as a matter of administrative convenience, not to requiretaxpayers to recognize the value of frequent flyer tickets earned duringemployer-paid travel.c. Had T earned the frequent flyer miles during travel he had paid for himself, theissue of income realization and recognition would not arise.d. Both (a) and (c) are correct.e. Both (b) and (c) are correct.   T buys a parcel of real estate for $100,000, which he finances by giving the seller a nonrecoursemortgage for the full purchase price. The debt is due in one balloon payment inYear 5. When the debt becomes due in Year 5, T decides to give the property back to theseller in satisfaction of the debt…

Taxpayer X and Taxpayer Y each agree to pay their tax preparer, Randy, from the refund they receive from the IRS. Upon presenting their refund checks to Randy, Randy pays them the difference in cash. Randy then endorses both checks and deposits them into his account. Randy has a Power of Attorney for Taxpayer X, but no Power of Attorney for Taxpayer Y. Randy can negotiate and endorse the refund check of Taxpayer X, but not that of Taxpayer YRandy can negotiate and endorse the refund check of Taxpayer Y, but not that of Taxpayer XRandy cannot negotiate or endorse either refundcheckRandy can negotiate and endorse both refund checksNEXT

John Taylor, a tax consultant, charges his clients a fee based on the percentage of the tax he saves a client. John received a payment from a client, but he realised that Angela didn’t declare income. Therefore, the income tax return that John’s prepared understated income tax liability.Taking into consideration the Accounting Professional Code of Conduct explain the Tax Penalties and actions John should take following his discovery.

T embezzles $100,000 from his employer in Year 1. The embezzlement isdiscovered during the course of an audit in Year 2, at which time T repays the money infull.a. T realizes $100,000 of income in Year 1.b. T doesn’t realize any income in Year 1 because he had a legal obligation torepay the money at the time he took it.c. T realizes $100,000 of income when the embezzlement is discovered in Year 2,but only if he doesn’t repay it in that year.d. None of the above.   While shopping at a flea market in Year 1, T bought a simple jewelry box for $20.When T got home with her new purchase, she discovered that the box had a hiddencompartment which contained an emerald ring. She then immediately had the ringappraised by an expert on emerald jewelry and learned that it was worth $5,000. T soldthe ring to her mother for $4,000 in Year 2.a. There are virtually no cases dealing with the recognition of income for noncashor non-bullion “treasure trove.”b. T would be required to recognize $4,980 of…

Sarah is a local CPA who performs part-time bookkeeping services for local businesses and does tax returns during tax season. Sarah does not know about the AICPA Code of Conduct or the IRS Circular 230. Draft a memo for your files and an email to Sarah to answer the questions below. 1. Explain what parts of the AICPA Code of Conduct apply to Sarah. 2. Explain what parts of the IRS Circular 230 apply to Sarah.

Martha, an accrual method taxpayer, has an accounting practice. In 2020, she performs tax analyses for Arnold and sends him an invoice for $10,000. In 2021, Martha sells her practice and all accounts to David. Arnold's debt becomes worthless that year after David has purchased the practice. The result is   a. Martha deducts a nonbusiness bad debt in 2021.   b. Martha deducts a business bad debt in 2021.   c. David deducts a business bad debt in 2021.   d. David deducts a nonbusiness bad debt in 2021.

Required information Skip to question   [The following information applies to the questions displayed below.]   Emily, who is single, has been offered a position as a city landscape consultant. The position pays $143,000 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction, and she did not make any charitable donations. (Use the tax rate schedules.)   a. What is the amount of Emily’s after-tax compensation (ignore payroll taxes)? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) 2021 Tax Rate Schedules IndividualsSchedule X-Single If taxable income is over: But not over: The tax is: $          0 $    9,950 10% of taxable income $    9,950 $  40,525 $995 plus 12% of the excess over $9,950 $  40,525 $  86,375 $4,664 plus 22% of the excess over $40,525 $  86,375 $ 164,925 $14,751 plus 24% of the excess…

Which of the following are not deductible by a CPA who prepares tax returns? a. Subscription to the Kiplinger Tax letter b. Subscription to CCH service online c.Dues to the country club to entertain clients d. Dues to the California Society of CPAs