In October 2014, Firm G completed a consulting engagement and received a $200,000 cash payment for its
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In October 2014, Firm G completed a consulting engagement and received a $200,000 cash payment for its services. In December, the client notified Firm G that it was unsatisfied with the work and demanded that Firm G refund $50,000 of the payment. Firm G refused and referred the matter to its attorney. In 2016, Firm G settled the dispute by paying the client $30,000. Firm G’s 2014 marginal tax rate was 39 percent and its 2016 marginal tax rate was 34 percent.
Identify the tax issue or issues suggested by the above situations, and state each issue in the form of a question.
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Should Firm G have recognized 200000 or only 150000 income in 2014 ...View the full answer
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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
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Related Book For 
Principles Of Taxation For Business And Investment Planning 2017
ISBN: 9781259753015
20th Edition
Authors: Sally M. Jones, Shelley C. Rhoades Catanach, Sandra R. Callaghan
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