Chapter 2, Problem 30P

Mary Ribukh was hired as a staff auditor of LGY and Company in 2005. In December 2012, he transferred to Quilava and Associates. In 2014, he returned back to LGY and Company until his retirement in 2020 at the age of 55. Question 1: Are the retirement benefits taxable to Anton? Question 2: Suppose he was terminated from employment due to dishonesty. Is the separation pay taxable to Anton? Question 3: Suppose he was terminated from employment due to the merger of the two audit firms Will the separation pay be taxable to Anton?   Yes, Yes, Yes No, Yes No No Yes, Yes Yes, No, No

A former longstanding client of an accounting practice is being investigated by the tax authorities. The former client requests the assistance of the practice in representing them. The client promises that, if the outcome is favourable, he will pay a substantial fee and re-appoint the practice as his accountants in the future. (Any tax payable will be deducted from the fee.) Which THREE threats to the fundamental principles are involved? OSelf-review OSelf interest O Intimidation OFamiliarity Advocacy

You are self-employed. Your business earns income during the period. You are subject to which of the following taxes?    A. Income Tax B. Business Tax C. A and B D. None of these

Ahmed owns the business Al-Shifa diagnostics and Mohammed works there as an employee. Which of the following statement is true based on the above statement? a. Both Mr. Mohammed and Mr. Ahmed income are uncertain b. Both Mr. Ahmed and Mr. Mohammed income are fixed c. Mr. Mohammed income is fixed while Mr. Ahmed income is uncertain d. Mr. Mohammed income is uncertain while Mr. Ahmed income is fixed

Explain the significance of Lucas v. Earl and Helvering v. Horst. C O A. Lucas v. Earl, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income. In Helvering v. Horst, the Supreme Court held that income from property is taxed to the person who owns the property rather than the person who receives the income. One cannot assign income by arranging to have payment made to another person. O B. Lucas v. Earl, the Supreme Court held that income from property is taxed to the person who owns the property rather than the person who receives the income. Helvering v. Horst, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income. OC. Helvering v. Horst, the Supreme Court held that earnings from labor are taxed to the person who performs the services rather than the person who receives the income. Lucas v. Earl, the…

Mr. Tom promises to find a job for Mr. Martin in a public company. Mr. Martin promises to pay 1000 OMR in return of this favour. Question a. Is this a valid contract? b. Is this agreement enforceable by law? Explain why or why not?

Ac. Which of the following statements regarding the home office deduction is true? In order to qualify for the deduction, a portion of the taxpayer's home must be used regularly and exclusively to meet with clients or customers. A home office deduction is not allowed for using the home office for administrative or management activities only. The home office deduction is limited to the taxable income of the business before the deduction. A depreciation deduction is not allowed for a home office.

. A firm in which A, B and C were partners, placed an order with D for supplying certain goods on credit. Before D could supply the goods C died. D supplied the goods after C’s death, being totally ignorant about the fact. A and B subsequently became insolvent. Can D make C’s estate liable for his debt? Explain.