TAX DISCUSSION 2-3 PARAGRAPHS
Beast8484In this activity, your instructor will assign you to a group with four of your peers. Each of you will research the possible tax consequences of each of the alternative rewards that Bob is considering and you will report your findings back to your group.
Your client, Bob, is the CEO of a corporation that has 12 stockholders who are also the only employees of the business. The corporation operates a boat dealership in Sherman, Texas. The corporation has accumulated earnings and profits of $3,000,000, not including the current year’s taxable income, which is expected to be $800,000. No dividends have been paid to stockholders. Bob has been very pleased with the corporation’s performance and he wants to reward the stockholders.
Bob is considering paying cash dividends of $10,000 per share or giving each employee a new boat that costs $10,000 and retails for $15,000.
In addition, when talking with Bob, you found that he has a corporate plane that he regularly uses for vacation and that he allows other corporate officers to use for vacation.
Should Bob consider paying a large year-end bonus to each employee instead of declaring dividends? Why or why not? Is there a tax issue that Bob needs to consider when loaning the corporate plane to stockholders for vacations? What actions can Bob take to minimize corporate tax while also providing rewards for stockholders?
Once everyone in the group has reported on the possible tax consequences, build on one another’s ideas until, as a group, you have fully fleshed out the advantages and disadvantages of each approach to Bob’s situation.
Support your posts with at least scholarly sources.
Please Explain in 2-3 paragraphs
- 8 years ago
- 5
Purchase the answer to view it
- order_29432_73011.docx
- The book is intercultural competence I need small paragraph about chpater 1
- FIND ME A RESOURCES AND WRITE A BRIEF SUMMARY OF IT
- CWV 101 Module 3 DQ 1
- Distributed Intelligence
- Assignment due in 5 hours don't respond if not able to reach time limit. simple individual reflection paper
- .
- Short Answer Questions
- Global HRM
- Use the Internet to access one (1) of your social media accounts (i.e., Facebook, Twitter, Pinterest, Instagram, etc.) and take note of the ads on the site. Describe the brands that are being marketed on your page. Discuss whether or not these ads catch y
- marketing discussion question