Background Information Langley Mason Health (LMH) is located in North Reno County, the largest public health care district in the state of Nevada, serving an 850 square mile area encompassing seven distinctly different communities. The health district was founded in 1937 by a registered nurse and dietician who opened a small medical facility on a former poultry farm. Today the health system comprises Langley Medical Center, a 317-bed tertiary medical center and level II trauma center; Mason Hospital, a 107-bed community hospital; and Mason Continuing Care Center and Villa Langley, two part-skilled nursing facilities (SNFs); a home care division; an ambulatory surgery center; and an outpatient behavioral medicine center. In anticipation of expected population growth in North Reno County and to meet the state-mandated seismic requirements, LMG developed an aggressive facilities master plan (FMP) that includes plans to build a state-of-the-art 453-bed replacement hospital for its Langley Medical Center campus, double the size of its Mason Hospital, and build satellite clinics in four of its outlying communities. The cost associated with actualizing this FMP is estimated to be $1 billion. Several years ago, LMH undertook and successfully passed the largest health care bond measure in the state's history and in so doing, secure $496 million in general obligation bonds to help fund its massive facilities expansion project. The remaining funds must come from revenue bonds, growth strategies, philanthropic efforts, and strong operational performance over the next ten years. Additionally, $5 million of routine capital funds will be diverted every fiscal year for the next five years to help offset the huge capital outlay that will be necessary to equip the new facilities. That leaves LMH with only $10 million per year to spend on routine maintenance, equipment, and technology for all its facilities. LMH is committed to patient safety and is building what the leadership team hopes will be one of the safest hospital-of-the-future facilities. The challenge is to provide for patient safety and safe medication practices given the minimal capital dollars available to spend today. LMH developed an IT strategic plan in late 2010, with the following ten goals identified: empower health consumers and physicians transform data into information support the expansion of clinical services expand e-business opportunities realize the benefits of innovation maximize the value of IT improve project outcomes prepare for the unexpected deploy a robust and agile technical architecture digitally enable new facilities, including the new hospital Information Systems Challenge LMH has implemented Phase I - an enterprise-wide EHR system developed by Cerner Corporation in 2008 at a cost of $20 million. Phase 2 of the project is to implement computerized provider order entry (CPOE) with decision-support capabilities. This phase was to have been completed in 2010, but has been delayed due to the many challenges associated with Phase 1, which still must be stabilized and optimized. LMH does have a fully automated pharmacy information system, albeit older technology, and Pyxis medication-dispensing systems on all units in the acute care hospitals. Computerized discharge prescriptions and instructions are available only for patients seen and discharged from the LMH emergency departments. Currently, the pharmacy and nursing staff at LMH have been working closely on the selection of a smart IV pump to replace all of the health system's aging pumps and have put forth a proposal to spend $4.9 million in the fiscal year beginning July 2018. Smart pumps have been shown to significantly reduce medication administration errors, thus reducing patient harm. This expenditure would consume roughly half of all the available capital dollars for that fiscal year. The chief information officer, Marilyn Moore, PhD, understands the pharmacists; and nurses' desire to purchase smart IV pumps but believes the implementation of this technology should not be considered in isolation. She sees the smart pumps as one facet of an overall medication management capital purchase and patient safety strategic plan. Dr. Moore suggest that the pharmacy and nursing leadership team lead a medication management strategic planning process and evaluate a suite of available technologies that taken together could optimize medication safety (for example, CPOE, electronic medication administration records (e-mar), robots, automated pharmacy systems, bar coding, computerized discharge prescriptions and instructions, and smart IV pumps), the costs associated with implementing these technologies, and the organization's readiness to embrace these technologies. Paul Robinson, PharmD, the director of pharmacy, appreciates Dr. Moore's suggestion but feels that smart IV pumps are critical to patient safety and that LMH doesn't have time to go through a long, drawn-out planning process that could take years to implement and the process of gaining board support. Others argue that all new proposals should be placed on hold until CPOE is up and running. They argue there are too many other pressing issues at hand to invest in yet another new technology.
Case Study Questions:
1. Describe the current situation as you see it. What are the major issues in this case?
2. Marilyn Moore, CIO, and Paul Robinson, director of pharmacy, have different views of how LMH should proceed. What are the pros and cons of their respective approaches? Which approach, if either, seems like an appropriate course of action to you? Explain your rationale.
In: Nursing
Create the general journals for these transactions:
| 6 | June 6 | Paid $12,000 wages owed to employees for work conducted in May. |
| 7 | June 7 | Received a $5,000 rent payment for the full month of June (again tenants were late and should have paid on June 1). |
| 8 | June 8 | Purchased property C with $220,000 cash. |
| 9 | June 9 | Received $6,000 cash for consulting conducted in May. |
| 10 | June 10 | Paid $500 for utilities that were invoiced in, and expensed in, May. |
| 11 | June 11 | You have secured an advertising billboard over the freeway. The design of the billboard costs $1,000 (which you pay today), and the monthly advertising fee will be $4000 (payable monthly - and only recognized at end of each month). You will receive the advertising in June for free as part of the contract promotion. |
| 12 | June 12 | You made an agreement with a web-developer to have your website redesigned. The cost will be $3000 and will be completed in August, payable on completion. |
| 13 | June 13 | You performed real estate consulting services this week and invoiced the client $14,000. |
| 14 | June 14 | Paid a $7,000 invoice for legal fees incurred on May 27. |
| 15 | June 15 | You purchased, with cash, a new $55,000 SUV to get you around town (previously you walked or used public transport). The expense associated with this automobile will be recognized each year for five years, beginning after one year of the asset's life. (Account name AUTOMOBILES) |
| 16 | June 16 | Received $5,000 cash today for the rental of your function hall associated with Property B for rental today June 16. |
| 17 | June 17 | Purchased property D with $160,000 cash. |
| 18 | June 18 | Purchased $1,000 office supplies for cash. |
| 19 | June 19 | Purchased property E with $80,000 cash. |
| 20 | June 20 | Received a $4,000 rent payment for the month of July. |
| 21 | June 21 | Purchased a $350,000 building with $100,000 cash and a note to the seller for the remainder. The building is to be used as your office (i.e. you will not rent this). This will be recorded under PPE. |
| 22 | June 22 | Paid $18,000 rent for a temporary office for July and August until your new building is ready (your parents kicked you (i.e. your office) out of their garage as they also bought a new car) |
| 23 | June 23 | Congratulations! The Boston Real Estate Society awarded your company a $10,000 cash prize for excellence in services to the profession. We will need to include this as revenue. (For the purposes of this activity, let’s account for it as miscellaneous revenue) |
| 24 | June 24 | Received a $7,000 payment for a consulting job that will be performed in July. |
| 25 | June 25 | Purchased property F with $155,000 cash. |
| 26 | June 26 | Received a $7,500 rent payment for the month of July. |
| 27 | June 27 | Performed $2,000 consulting services today and will prepare and send the invoice this week. |
| 28 | June 28 | Received a $6,000 rent payment for the month of July. |
| 29 | June 29 |
Paid your monthly $5,000 radio advertising subscription for July advertising (which unfortunately increased to $5000 from $4500) |
| 30 | June 30 | Prepaid the $4,000 billboard advertising for the month of July. |
| Adjusting Entries | ||
| 31 | June 30 | Recognize the June radio advertising incurred ($4,500). |
| 32 | June 30 | Recognize your June TV advertising incurerd ($2,000) which you have not yet paid for. |
| 33 | June 30 | Recognize the interest incurred on the note from transaction 2 for June, to be paid in July. |
| 34 | June 30 | Recognize $20,000 of wages owed for June, that will be paid to employees early July. |
| 35 | June 30 | Recognize the entire yearly depreciation on your computer equipment of $3,000. |
| 36 | June 30 | Recognize the $15,000 rent revenue for June ($10,000 of which was prepaid in May). |
In: Accounting
Case 7: Case Problem 5, p. 1088 (Mallor 16th Ed. Chap 41): MeadWestvaco Corp. v. Ill. Dept. of Rev., 128 S.Ct. 1498 (2008).
Mead Corporation, an Ohio corporation in the business of producing and selling paper, packaging, and school and office supplies, also owned Lexis/Nexis, the electronic research service. Either as a separate subsidiary or as a division of Mead, Lexis was subject to Mead's oversight, but Mead did not manage its day-to-day affairs. Mead was headquartered in Ohio, while a separate management team ran Lexis out of its headquarters in Illinois. The two businesses maintained separate manufacturing, sales, and distribution facilities, as well as separate accounting, legal, human resources, credit and collections, purchasing, and marketing departments. Mead's involvement was generally limited to approving Lexis's annual business plan and any significant corporate transactions that Lexis wished to undertake. Mead managed Lexis's free cash, which was swept nightly from Lexis's bank accounts into an account maintained by Mead. The cash was reinvested in Lexis's business, but Mead decided how to invest it. Neither business was required to purchase goods or services from the other. Lexis, for example, was not required to purchase its paper supply from Mead and in fact purchased most of its paper from other suppliers. Neither received any discount on goods or services purchased from the other, and neither was a significant customer of the other. In 1994, Mead sold Lexis for $1.5 billion, realizing a capital gain of over $1 billion. Mead did not report any of this gain as business income on its 1994 Illinois tax return, taking the position that it was nonbusiness income and should be allocated entirely to Mead's domestic state, Ohio.
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1. Before a state may impose taxes on the income of a domestic corporation, due process requires that substantial contacts exist between the state and the corporation’s employees, activities or property and that the tax is fairly proportioned and rationally related to services provided by the state. |
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2. The unitary business principle, which permits a state to tax an apportioned share of that business' value instead of isolating the value attributable to the intrastate operation, should be applied to Mead Corporation. |
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3. Mead Corporation is domestic with respect to Ohio and foreign with respect to Illinois, and the income earned by Mead (including the gain on the sale of LexisNexis) can be taxed by Ohio but not Illinois. |
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4. Mead Corporation can be sued in the states of Ohio and Illinois, because it engaged in business activities in those states; but Mead cannot bring suit in the state of Illinois unless it registered to do business in Illinois. |
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5. Illinois can (a) require Mead Corporation to comply with public health and safety laws while engaged in intrastate activities, provided those laws do not impose an undue burden on interstate commerce, and (b) regulate the relationship among the corporation and its shareholders. |
In: Finance
THE LANGUAGE IS JAVA
Download the class ArrayManager.java and fill out the method shells with the specifications below. After creating the methods 2) through 5), test them by running the application. The main method allows users to enter a command and, when necessary, additional command specifications.
1) a method displayArray:
2) a method expandIntArray:
3) a method shrinkIntArray:
4) a method insertValue:
5) a method removeValue:
HERE'S "ArrayManager.java" code:
import java.util.Scanner;
public class ArrayManager {
int[] data = new int[0];
public static void main(String[] args) {
ArrayManager am = new ArrayManager();
while(true) {
System.out.println("please enter a command: display, expand, shrink, insert, remove, expand");
String command = new Scanner(System.in).next();
switch(command) {
case "display": am.displayArray(am.data); break;
case "expand": am.data = am.expandIntArray(am.data); break;
case "shrink": am.data = am.shrinkIntArray(am.data); break;
case "insert": System.out.println("please enter the new value");
int value = new Scanner(System.in).nextInt();
System.out.println("please enter the insertion index");
int insert = new Scanner(System.in).nextInt();
am.data = am.insertValue(am.data, value, insert); break;
case "remove": System.out.println("please enter the removal index");
int delete = new Scanner(System.in).nextInt();
am.data = am.removeValue(am.data, delete); break;
}
}
}
void displayArray(int[] data) {
}
int[] expandIntArray(int[] data) {
int[] data2 = null;
return data2;
}
int[] insertValue(int[] data, int value, int index) {
int[] data2 = null;
return data2;
}
int[] removeValue(int[] data, int index) {
int[] data2 = null;
return data2;
}
int[] shrinkIntArray(int[] data) {
int[] data2 = null;
return data2;
}
}In: Computer Science
Thank goodness! The day is almost over at Gimme & Aye… or so you thought. You have been interning at the Law Offices of Gimme and Aye for the summer, and you have been exposed to many legal issues. The hours have been long, but rewarding. As you daydream about your upcoming weekend, Bob busts into the office. Bob’s reputation precedes him. He has a track record of getting himself into trouble. Jim, the boss, flags you over. Jim: “I know Bob got himself into trouble again. Take his statement, ask questions as you need, then come back to me for further instructions.” You sit with Bob to take his statement. You: “Hello Bob, I am here to take your statement.” Bob: “Hi there, I may have gotten myself into trouble. I am out on bail. I came straight here as soon as I could.” You: “Do you know why you were arrested?” Bob: “They said something about a RICO violation. Then they brought a few other things that I had done, and yada yada, bla bla” You: “Well why don’t you take it from the top, so that we can analyze this better?” Bob: “Okay, Here is goes. I worked at the Bait shop for about a year and half. Everything was going well in the beginning. I handled the financing, and other money stuff, while the other employees handled the other customer-facing parts of the business. “ “Then one day, I found out how much the business owner was making. Then I compared it to how much I was making. It made my blood boil. So, I starting to move the money around to that I could take a little extra for myself. The business owner never found out until recently.” “Then, the business owner, went and opened another store across town. He then sold to me the original store. So, I thought to myself, ‘what am I going do with this store? I would rather just have some money.’ And that is when it hit me. If there was ‘an accident’, then I could just collect on the insurance money. So I struck a match, dropped it, and let the place burn to ground.” “I was okay with what I did, but I thought now I have the money that I took when I handled financing, and the insurance payout – I am going to have to do something with this money to make it legit. So, I invested it in a coffee shop that was one town over.” “I am not sure how the law caught up with me, but they did, and they keep talking out RICO. I don’t have much else to tell you.” You: “Okay think that is all that I need to get started. Thank you.” Bob leaves, and you report back to Jim. Jim: “At first glance, this is a RICO violation. For your report I will need the following:” (Answer the following question using fact pattern above and the information found in Chapter 7) 1. There two steps to proving a RICO case, so explain what they are. 2. Fully explain Bob’s actions (including the correct crimes and definitions) , and explain how it all fits into the two steps of RICO. 3. I will need a minimum of three Paragraphs for your report. Also write in complete sentences and DO NOT uses lists.
In: Finance
Suppose you calculated the mean, median, mode, and sample standard deviation of a data set. The results are shown below.
Mean: 44
Median: 31
Mode: 46
Sample Standard Deviation: 2
If each number in the data set was decreased by 4 units, what would
be the new values of these statistics?
Fill in your results below.
New Mean:
New Median:
New Mode:
New Sample Standard Deviation:
In: Statistics and Probability
A data audit is a critical activity that must be done at the beginning of any analytics project when you are working with an existing workbook or are given a dataset from another person. The purpose of this exercise is to conduct a data audit on a worksheet that contains sales data for a hypothetical apparel retailer.
The data shown in the file named Chapter 1 DA Exercise 2 contains data that was provided to you by a coworker. The Excel file should contain sales data for two years by month. You intend to use this data to evaluate the company’s sales trend by season. In addition, you will need to analyze the average price per month to determine if there are months where customers are spending more money for each item purchased. The data should contain sales in units and dollars. For any given month, the sales in units multiplied by the average price should equal the sales in dollars. Open the file named Chapter 1 DA Exercise 2. Audit the data in the Sheet1 worksheet. Record any problems you find in the dataset in the AnswerSheet worksheet. Note that there are more rows to document problems in the dataset than are needed.
| Company Sales Data | ||||
| Year | Month | Unit Sales | Average Price | Sales Dollars |
| 2017 | January | 6,000 | 9.99 | $ 59,940 |
| 2017 | February | 4,500 | 12.49 | $ 56,205 |
| 2017 | March | 4,500 | 14.99 | $ 67,455 |
| 2017 | April | 3,000 | 16.99 | $ 50,970 |
| 2017 | May | 3,000 | 17.99 | $ 53,970 |
| 2017 | June | 1,500 | 14.99 | $ 22,485 |
| 2017 | June | 1,500 | 14.99 | $ 22,485 |
| 2017 | August | 3,000 | 17.49 | $ 52,470 |
| 2017 | September | 4,000 | 19.99 | $ 79,960 |
| 2017 | October | 5,000 | 19.99 | $ 99,950 |
| 2017 | November | 6,000 | 17.49 | $ 104,940 |
| 2017 | December | 7,500 | 14.99 | $ 112,425 |
| 2018 | January | 6,250 | 8.49 | $ 53,063 |
| 2018 | February | 5,000 | 12.99 | $ 64,950 |
| 2018 | March | 6,000 | 12.99 | $ 950 |
| 2018 | April | 3,500 | 17.49 | $ 61,215 |
| 2018 | May | 2,500 | 16.49 | $ 41,225 |
| 2018 | June | 2,000 | 14.99 | $ 29,980 |
| 2018 | July | 3,000 | 10.99 | $ 32,970 |
| 2018 | August | 3,000 | 10.99 | $ 32,970 |
| 2018 | September | 4,500 | 19.49 | $ 87,705 |
| 2018 | October | 5,200 | 21.49 | $ 111,748 |
| 2018 | December | 8,000 | 13.99 | $ 111,920 |
| Use this worksheet to answer any written questions for this exercise. | ||||||||
| Write your answer in the merged open cell next to each Question number. | ||||||||
| Question | Response | |||||||
| 1 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 | ||||||||
| 5 | ||||||||
| 6 | ||||||||
| 7 | ||||||||
| 8 | ||||||||
| 9 | ||||||||
In: Accounting
n this chapter, we have noted how businesses are dynamic and constantly looking to exploit new opportunities that involve changing the way they operate production. What might not have been a success for some firms does not mean to say that there are no other firms that will be able to benefit. This article shows how problems faced by one firm in making sufficient profits are not necessarily shared by other firms as the use of factor inputs is changed.
Best Buy Fails to Break UK Market.
US electrical retailer, Best Buy, made an attempt to enter the UK electrical retail market in 2010. The retailer is known across the united states for its high-quality sales staff and discount prices and attempted to bring its business model to the crowded UK market which features the likes of Currys, Argos, Dixons, and Comet.
The plans to enter the UK market arose when Best Buy Inc. brought half of the Carphone Warehouse's retail interests. Plans were made to open up to 200 so-called 'Big-Box' stores throughout the UK within the first one opening in Thurrock, Essex in April 2010. However, facing strong competition a lack of brand recognition by UK consumers, and the rapid growth of online retailing from firms like Amazon, Best Buy found things difficult and by January 2012 a decision was made to close down its 11bricks and mortar retail operations following losses of around 62 million pounds.
The decision to close down was made after consideration was given to commit more capital to its operations in an attempt to secure the advantages of large-scale production - economies of scale. In the end, the cost of such an investment in relation to the expected benefits in a market which was challenging (given the economic situation in the UK, the income elasticity of demand for electrical goods in general, and the increasing use of online as the medium of choice for shoppers), meant that option was discounted.
The decision to close down operations will have been takin in the light of the expected costs of trying to maintain its presence on the high street and the future of the industry as a whole. it would not have been taken lightly as reports suggested closing down would cost Best Buy and Carphone Warehouse around 100 million pounds.
One option being considered was selling its stores to the UK's fourth-largest supermarket group by share, Morrisons. Morrisons was reported to have expressed interest in acquiring the stores, mostly in large out-of-town retail sites, for its Kiddicare brand of baby, infant, and small children's products such as toys, pushchairs, costs, and so on.
The reports caused interest in the markets and some surprise given the challenges that exist in that market for some of the reasons that Best Buy found life difficult. An increasing trend to purchase goods online and the economic climate had already seen retailers like Mothercare and its Early Learning Centre stores facing declining sales and profits. Kiddicare had been an almost exclusively online operation and so the decision by Morrisons to move into the bricks and mortar sector was seen as a high-risk move.
Question:
How might Carphone Warehouse and Best Buy have gained economies of scale if they had committed new capital? Explain your reasoning.
Please provide with right and exact answer the one posted already is not accurate
In: Economics
n this chapter, we have noted how businesses are dynamic and constantly looking to exploit new opportunities that involve changing the way they operate production. What might not have been a success for some firms does not mean to say that there are no other firms that will be able to benefit. This article shows how problems faced by one firm in making sufficient profits are not necessarily shared by other firms as the use of factor inputs is changed.
Best Buy Fails to Break UK Market.
US electrical retailer, Best Buy, made an attempt to enter the UK electrical retail market in 2010. The retailer is known across the united states for its high-quality sales staff and discount prices and attempted to bring its business model to the crowded UK market which features the likes of Currys, Argos, Dixons, and Comet.
The plans to enter the UK market arose when Best Buy Inc. brought half of the Carphone Warehouse's retail interests. Plans were made to open up to 200 so-called 'Big-Box' stores throughout the UK within the first one opening in Thurrock, Essex in April 2010. However, facing strong competition a lack of brand recognition by UK consumers, and the rapid growth of online retailing from firms like Amazon, Best Buy found things difficult and by January 2012 a decision was made to close down its 11bricks and mortar retail operations following losses of around 62 million pounds.
The decision to close down was made after consideration was given to commit more capital to its operations in an attempt to secure the advantages of large-scale production - economies of scale. In the end, the cost of such an investment in relation to the expected benefits in a market which was challenging (given the economic situation in the UK, the income elasticity of demand for electrical goods in general, and the increasing use of online as the medium of choice for shoppers), meant that option was discounted.
The decision to close down operations will have been takin in the light of the expected costs of trying to maintain its presence on the high street and the future of the industry as a whole. it would not have been taken lightly as reports suggested closing down would cost Best Buy and Carphone Warehouse around 100 million pounds.
One option being considered was selling its stores to the UK's fourth-largest supermarket group by share, Morrisons. Morrisons was reported to have expressed interest in acquiring the stores, mostly in large out-of-town retail sites, for its Kiddicare brand of baby, infant, and small children's products such as toys, pushchairs, costs, and so on.
The reports caused interest in the markets and some surprise given the challenges that exist in that market for some of the reasons that Best Buy found life difficult. An increasing trend to purchase goods online and the economic climate had already seen retailers like Mothercare and its Early Learning Centre stores facing declining sales and profits. Kiddicare had been an almost exclusively online operation and so the decision by Morrisons to move into the bricks and mortar sector was seen as a high-risk move.
Questions:
1. For Morrisons, what is the difference between the short run and the long run in this case?
3. How might Carphone Warehouse and Best Buy have gained economies of scale if they had 'committed new capital'?
4. Why might Carphone Warehouse and Best Buy 'incur a cost of as much as 100 million pounds' in closing down the stores?
5. If Mothercare is 'troubled' why might Morrisons believe it can succeed with Kiddicare?
In: Economics
In case you have never viewed Kitchen Nightmares or Bar Rescue, here’s the drill: a beleaguered owner of a 1970s roach-infested bar/grille/restaurant featuring freezer-burned food sautéed with bacteria “cooked” in a non-functioning microwave reaches out to Gordon Ramsay or Jon Taffer for help. Apparently, he or she cannot imagine why the business is failing. Yet, despite the owner’s insistence that the food is awesome, the patrons have disappeared and mountains of unpaid bills (including delinquent—most likely payroll taxes) are piled high on the owner’s desk in a makeshift fire hazard cluttered office. Although Jimmy Buffett might say “there is a woman to blame,” the owners blame the economy or a disrespectful staff, or both, (never the food or themselves) for their dire economic situation. Go figure.
In Kitchen Nightmares, for example, after hearing a barrage of excuses and finger pointing, Gordon Ramsay scratches his head and says “Right.” Then, after sampling each “dish” on a menu with more pages than the Internal Revenue Code and spitting it out in disgust, he compares the food unfavorably to inedible scraps he would not even feed to a mouse or other rodent. In response to Ramsay’s profanity-laced, bleeped-out assertions that the owner is delusional and in denial for not acknowledging indisputable evidence that the food is lousy, the owner stubbornly insists that it is the best cuisine in town loved by loyal diners (of which there are none).
Predictably, after 50 television minutes of air time, the poor soul owner suddenly realizes that being reamed out, degraded, and exposed as a selfish and disrespectful owner who has “given up” or “doesn’t care” on national television is actually constructive criticism rather than the very personal character assassination it had originally seemed to be. After finally acknowledging that he or she is the blame, there is an emotional epiphany followed by happy talk about looking forward optimistically into the future.
Finally, waiving a magic wand that would be the envy of Cinderella’s fairy godmother, miraculously and literally overnight, Ramsay’s crew of carpenters, designers and electricians the size of a small (or not so small) army transforms the roach infested dump that should have been condemned into a five-star fine dining establishment. The transformation often includes the installation of state-of-the-art kitchen equipment, a professional cleaning, a new eye-catching sign, a complete inside and outside renovation (including new floors, art work, high definition televisions, lighting and other expensive décor), and maybe an executive chef to run the kitchen for six months.
In the aftermath of the smiles and hugs followed by the closing credits, there is an inconvenient tax issue. Cleary any owner on the verge of financial ruin would gladly accept Ramsay’s or Taffer’s offer to transform the failing restaurant or bar from a dump to palace.
Wow! Check please. In other words, who pays the exorbitant cost of the transformation? Obviously, it is the network, certainly not the hopelessly-in-debt owner, who pays.
Submit a thoughtful analysis of income tax issues you glean from the fact pattern. There may be tax issues with respect to the network as well as the downtrodden owner. In order to get full credit, you must fully analyze each issue and explain your conclusion. For example, if you determine whether something is taxable or non-taxable, simply stating that is not sufficient. Instead, you must explain the rationale for your conclusion.
In: Accounting