ABC Corporation purchased a machine on January 1, 2017, for $56,000. Before the machine was utilized in a productive capacity, it was needed to build a support in value of $4,000 to accommodate the machine, and to train an operator for using the machine ($2,000). For security reasons, a 5-years insurance policy was purchased for the machine in value of $5,000.

Depreciation on the machine was recorded at the end of each year. The depreciation rate is $6,200 per year. On February 1, 2020, the machine was sold for $40,000.

As a result of sale, ABC Corporation records a:

Loss 2.633

Loss 2.367

Gain 2.367

Gain 40.000

First reported to the World Health Organisation as an unknown virus in late December 2019,
coronavirus/COVID19 developments throughout 2020 are causing great uncertainty for the global
economy. This uncertainty is creating risks that entities may not have encountered before, and gives
rise to new and rapidly changing conditions that auditors may not have previously encountered.

What impediments do travel restrictions present to the performance of the audit?(300 words)

And what COVID19 considerations would management take into account when determining
whether its business is still a going concern?(200 words)

Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported $600,000 of taxable business income for the year (2020). Before considering her 50 percent business income allocation from Beehive and the self-employment tax deduction (if any), Sarah’s adjusted gross income is $150,000 (all employee salary). Answer the following questions for Sarah.

c. What is Sarah’s self-employment tax liability?

d. What is Sarah’s additional Medicare tax liability?

The unexpected and unprecedented outcome of COVID-19 has seen many businesses come face to face with challenges, the likes of which they have never faced before. The virus has had serious consequences on the fiscal position of the country. Despite this, the Government of Ghana in March 2020, announced various tax incentives for specified individuals and entities in response to the impact of COVID-19 on the economy.

As a Tax and Business Strategy student, identify the various tax measures instituted by the government for individuals and businesses in this Covid-19 era, and provide reasons why you agree or disagree with the government’s intervention.

Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does not do any work for Beehive. Beehive LLC. reported $600,000 of taxable business income for the year (2020). Before considering her 50 percent business income allocation from Beehive and the self-employment tax deduction (if any), Sarah’s adjusted gross income is $150,000 (all employee salary). Show all work.

c. What is Sarah’s self-employment tax liability?

d. What is Sarah’s additional Medicare tax liability?

In May of the current year (2020), Mark began investigating the possibility of opening a law firm. From May through July he spent $1,200 on a market survey, $3,600 in consulting fees to find the best location, and $2,000 in professional fees setting up an accounting and inventory system. Although he had never run his own business before, on August 1 he opened his doors for business. What is the maximum amount of deduction for the current year attributable to these expenditures? Show work.

A) $0

B) $5,050   

C) $5,080  

D) $6,800

Delta had a deferred tax asset of $200 million with no valuation allowance on December 31, 2020. At the end of 2021, Delta had a deferred tax asset of $230 million before assessing the need for a valuation allowance. For the year 2021, Delta's income taxes payable is $85 million. At the end of 2021, Delta determined that it was more likely than not that 20% of its deferred tax assets will not be realized. What amount should Delta report as income tax expense in its 2021 income statements

101 million.
148 millon.
115 million.
84 million.

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled by a Normal model with mean

​$196.59

and standard deviation

​$7.14

According to this​ model, what is the probability that on a randomly selected day in this period the stock price closed as follows.

​a) above

​$203.73?

​b) below

​$210.87?

​c) between

​$182.31

and

​$210.87

​d) Which would be more​ unusual, a day on which the stock price closed above

​$210

or below

​$190

For 300 trading​ days, the daily closing price of a stock​ (in $) is well modeled by a Normal model with mean ​$197.89 and standard deviation ​$7.17. According to this​ model, what is the probability that on a randomly selected day in this period the stock price closed as follows. ​a) above ​$205.06​? ​b) below ​$212.23​? ​c) between ​$183.55 and ​$212.23​? ​d) Which would be more​ unusual, a day on which the stock price closed above ​$210 or below ​$180​?