REW, Inc. is closely held by six members of the REW family. The corporation owns two vans that employees use for various business transportation purposes. However, for at least eight weeks during each year, the shareholders use the vans to take their families on extended vacation trips. Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.

In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. Ariel has worked for Sander Corporation for 30 years. Sander has a pension plan in which it matches employee contributions by up to 5 percent of the employees salary. Ariel, who is single, retires during the current year when she is 66 years old. Her pension plan contains payments and earnings of 300,000, half of which are attributable to payments made by Ariel and half attributable to payments made by Sander. Under the plan, Ariel is to receive 2,000 per month until she dies.

Rosen Corporation was formed on December 12, Year 1. It plans to close its books annually each December 31. Rosen is located in Lanmark City and Apple County. The fiscal period of these two governmental units runs from July 1 to June 30. The property tax that they assess on property held on January 1 of each year becomes a lien against the property on July 1. The estimated property taxes for Rosen for the period July 1, Year 2, to June 30, Year 3, are $15,300. The tax bill is mailed in October with a requirement that the tax be paid before December 31. The tax bill received on October 31, Year 2, for Rosen revealed an actual tax of $15,705, and the corporation paid this amount on November 15, Year 2. Rosen elects to record monthly property tax adjustments for interim statements required by management. 1. Prepare the necessary journal entries to record: 1. The monthly property tax adjustments from July Year 2 to October Year 2 2. The payment on November 30, Year 2 (before the November…

Rosen Corporation was formed on December 12, Year 1. It plans to close its books annually each December 31. Rosen is located in Lanmark City and Apple County. The fiscal period of these two governmental units runs from July 1 to June 30. The property tax that they assess on property held on January 1 of each year becomes a lien against the property on July 1. The estimated property taxes for Rosen for the period July 1, Year 2, to June 30, Year 3, are $15,300. The tax bill is mailed in October with a requirement that the tax be paid before December 31. The tax bill received on October 31, Year 2, for Rosen revealed an actual tax of $15,705, and the corporation paid this amount on November 15, Year 2. Rosen elects to record monthly property tax adjustments for interim statements required by management.  1. Prepare the necessary journal entries to record:   1. The monthly property tax adjustments from July Year 2 to October Year 2   2. The payment on November 30, Year 2 (before the…

GV is a small accounting firm supporting wealthy individuals in their preparation ofannual income tax statements. Every December, GV sends out a short survey to itscustomers, asking for the information required for preparing the tax statements. Basedon 50 years of experience, GV categorizes its cases into the following two groups:• Group 1 (new customers): 20 percent of cases• Group 2 (repeat customers): 80 percent of casesThis year, there are 50 income tax statements arriving each week.In order to prepare the income tax statement, GV has three resources.The activities are carried out by the following three persons:• An administrative support person who processes every tax statement.• A senior accountant (who is also the owner) who processes only tax statements fornew customers.• A junior accountant who only processes tax statements for repeat customers.What is the total demand rate for each of the three resources?

Discuss the law that applies to this issue and then answer the questions at the end of the paragraph.

Fred Stone is an employee of Henrock Company. During the first part of the year, Stone earned $4,340 while working in State Q. For the remainder of the year, the company transferred him to State S where he earned $27,000. Henrock Company's tax rate in State Q is 4.6%, and in State S, 4.0% on the first $7,000. If reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid on Stone's earnings in State S. Round your answer to the nearest cent.$fill in the blank 1

Marquette Corporation, a tax client since its creation three years ago, has requested that you prepare a memorandum explaining its estimated tax requirements for the current year. The corporation is in the fabricated steel business. Its earnings have been growing each year. Marquette’s taxable income for the last three tax years has been $500,000, $1.5 million, and $2.5 million, respectively. The Chief Financial Officer expects its tax-able income in the current year to be approximately $5 million. Required: Prepare a one-page client memorandum explaining Marquette’s estimated tax requirements for the current year, providing the necessary supporting authorities.

In 2013, taxpayers filed 145,819,388 tax returns. About how many of these tax returns would you expect were selected for examination?

Mr. A owns all of the interests in a limited liability company (LLC) that customizes accounting software for business customers.  LLC reports its income on the accrual basis and the calendar year.  As sole owner, Mr. A must report all of LLC’s income on his joint Federal income tax return. For all years through and including Year 2, LLC followed the practice of booking revenues monthly based on the monthly bills that it issued to its customers.  In Year 3, LLC continued this practice with respect to all of its historical customers. However, during Year 3, LLC agreed with one new customer (New Customer) to hold off on billing until the entire project was complete.  LLC began work and logged $100,000 of time and other charges during Year 3.  LLC completed the project and billed the customer $250,000 in Year 4. What amount(s) should Mr. A include in his income with respect to the New Customer project?   I put 100k in year 3, but my professor had $0 for year 3 and 250k for year 4.