{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T07:41:40-04:00", "answer_date": "2024-06-28 07:41:40", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4265197", "url": "\/study-help\/questions\/accounting-methodsprocedure-cases-the-format-for-the-paper-is-that-4265197", "question_creation_date_js": "2024-06-28T07:41:40-04:00", "question_creation_date": "Jun 28, 2024 07:41 AM", "meta_title": "[Solved] Accounting Methods\/Procedure Cases The fo | SolutionInn", "meta_description": "Answer of - Accounting Methods\/Procedure Cases The format for the paper is that of a memo to the partner for the client. It must c | SolutionInn", "meta_keywords": "accounting,methods\/procedure,cases,format,paper,memo,partner,client,3,labeled,sections,1", "question_title_h1": "Accounting Methods\/Procedure Cases The format for the paper is that of a memo to the partner for the client. It must contain only 3 clearly", "question_title": "Accounting Methods\/Procedure Cases The format for the paper is that of a", "question_title_for_js_snippet": "Accounting Methods Procedure Cases The format for the paper is that of a memo to the partner for the client It must contain only 3 clearly labeled sections 1 The issue, 2 The summary of authorities , 3 The conclusion recommendations Note The only authorities that will be accepted are the Code, Regs, Rev Ruls and court cases You must always summarize the appropriate Code and Reg Sections Additionally, if research Aids are provided in the problem, all of the must be used in your paper Tomiko owns the copyright to several classic Motown songs In 2008, he became aware that Tinseltown Records was selling several of his songs without his permission He sues Tinseltown seeking $1,000,000 in damages In 2010, the court awards Tomiko $500,000 in compensatory damages, $50,000 in prejudgment interest, post judgment interest to the date of payment, and court costs Tinseltown is aware that Tomiko is likely to appeal the judgment and offers to settle for $600,000 with no pay ment of postjudgment interest or court costs On the advice of his attorney, Tomiko rejects the settlement offer On December 29, 2010, Tomiko receives a check for $600,000 from Tinseltown An accompanying letter notes that the payment is in full settlement of the order of the court Tomiko believes that if he cashes the check, he will forfeit his right to appeal the judgment, the postjudgment interest, and court costs Accordingly, he immediately returns the check to Tinseltown via overnight mail, stating in a letter that his appeal rights are not exhausted and he is returning the check until such time as the issue is settled Tinseltown remails the check on December 31, 2010 Included with the check is a letter advising Tomiko that Tinseltown intends to deduct the $600,000 in 2010 and that the funds are available for his unrestricted use On January 15, 2011, Tomiko files an appeal seeking an increase in the damage award The next day, he deposits Tin seltowns check into his business account On June 5, 2011, the appeals court rejects Tomikos appeal for higher damages Tomiko is a cash basis taxpayer In what year should he include the $600,000 in income Read the following authorities, and determine the proper year for Tomiko to include the $600,000 in income Sec 451 Reg Sec 1 451 2 Walter I Bones , 4 T C 415 (1944) Fromson v Comm , 32 Fed Cl 1, 74 A F T R 2d, 5642 (Cl Ct , 1994), 94 2USTC 50,425 Copyright CENGAGE Learning Concepts in Federal Taxation 2017 Edition 24 ", "question_description": "

Accounting Methods\/Procedure Cases<\/strong><\/p>

The format for the paper is that of a memo to the partner for the client. It must contain only 3 clearly labeled sections. 1. The issue, 2. The summary of authorities**, 3. The conclusion\/recommendations.<\/strong><\/p>

**Note: The only authorities that will be accepted are the Code, Regs, Rev. Ruls. and court cases. You must <\/u>always summarize the appropriate Code and Reg Sections. Additionally, if research Aids are provided in the problem, all <\/u>of the must be used in your paper.<\/strong><\/p>

Tomiko owns the copyright to several classic Motown songs. In 2008, he became aware that Tinseltown Records was selling several of his songs without his permission. He sues Tinseltown seeking $1,000,000 in damages. In 2010, the court awards Tomiko $500,000 in compensatory damages, $50,000 in prejudgment interest, post- judgment interest to the date of payment, and court costs. Tinseltown is aware that Tomiko is likely to appeal the judgment and offers to settle for $600,000 with no pay- ment of postjudgment interest or court costs. On the advice of his attorney, Tomiko rejects the settlement offer.<\/p>

On December 29, 2010, Tomiko receives a check for $600,000 from Tinseltown. An accompanying letter notes that the payment is in full settlement of the order of the court. Tomiko believes that if he cashes the check, he will forfeit his right to appeal the judgment, the postjudgment interest, and court costs. Accordingly, he immediately returns the check to Tinseltown via overnight mail, stating in a letter that his appeal rights are not exhausted and he is returning the check until such time as the issue is settled. Tinseltown remails the check on December 31, 2010. Included with the check is a letter advising Tomiko that Tinseltown intends to deduct the $600,000 in 2010 and that the funds are available for his unrestricted use. On January 15, 2011, Tomiko files an appeal seeking an increase in the damage award. The next day, he deposits Tin- seltowns check into his business account. On June 5, 2011, the appeals court rejects Tomikos appeal for higher damages. Tomiko is a cash basis taxpayer. In what year should he include the $600,000 in income?<\/p>

Read the following authorities, and determine the proper year for Tomiko to include the $600,000 in income:<\/p>

Sec. 451.Reg. Sec. 1.451-2. Walter I. Bones , 4 T.C. 415 (1944). Fromson v. Comm ., 32 Fed.Cl. 1, 74 A.F.T.R.2d, 5642 (Cl. Ct., 1994), 94-2USTC { 50,425.Copyright | CENGAGE Learning | Concepts in Federal Taxation 2017 | Edition 24 |<\/p>", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "1479198382", "uri": "\/textbooks\/win-more-union-organizing-drives-1st-edition-978-1479198382-288810", "name": "Win More Union Organizing Drives", "edition": "1st Edition" }, "question_posted": "2024-06-28 07:41:40", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/multiple-choice-1-the-sarbanes-oxley-act-of-2002-requires", "description": "Multiple- Choice 1. The Sarbanes- Oxley Act of 2002 requires management to include a report on the effectiveness of ICFR in the entitys annual report. It also requires auditors to report on the...", "stars": 3.5 }, { "url": "\/study-help\/business-statistics-in-practice\/20-product-introduction-part-4-for-the-product-launch-decision-1983660", "description": "=+20. Product introduction, part 4. For the product launch decision of Exercise 12, the economy isnt looking that good. Your very cautious boss says that he thinks theres a 60% chance of low sales,...", "stars": 3.5 }, { "url": "\/determine-the-price-of-a-1-million-bond-issue-under", "description": "Determine the price of a $1 million bond issue under each of the following independentassumptions: Maturity interest Paid Stated Effective Rate (Market) Rate 10 10|semiannually 10|semiannually 20...", "stars": 3 }, { "url": "\/study-help\/questions\/on-july-1-2021-lillard-inc-purchased-a-patent-for-9872623", "description": "On July 1, 2021. Lillard, Inc. purchased a patent for $5,300,000. The patent was initially expected to have a 14 year useful life with no salvage value, and straight line amortization was used (with...", "stars": 3 }, { "url": "\/study-help\/questions\/a-solid-ball-a-cylinder-and-a-hollow-ball-all-416399", "description": "A solid ball, a cylinder, and a hollow ball all have the same mass m and radius R. They are allowed to roll down a hill of height H without slipping. How fast will each be moving on the level ground?...", "stars": 3 }, { "url": "\/study-help\/questions\/3-which-among-the-following-is-popularly-called-hypo-a-8829095", "description": "3. Which among the following is popularly called Hypo? [A] Silver bromide [B] Silver nitrate [C] Sodium thiosulphate [D] Sodium phosphate", "stars": 3 }, { "url": "\/study-help\/questions\/1-daltons-name-is-associated-with-which-of-the-following-8829096", "description": "1. Daltons name is associated with which of the following terms? [A] Electron [B] Proton [C] Atom [D] Neutron", "stars": 3 }, { "url": "\/study-help\/questions\/define-administration-8829097", "description": "Define Administration?", "stars": 3 }, { "url": "\/study-help\/questions\/define-decision-making-8829098", "description": "Define Decision making", "stars": 3 }, { "url": "\/study-help\/questions\/what-are-the-major-social-responsibilities-of-business-managers-8829099", "description": "What are the major social responsibilities of business managers ?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/a-job-was-budgeted-to-require-5-hours-of-labor-4265196", "next": "\/study-help\/questions\/what-is-the-difference-between-fiscal-and-monetary-policygive-examples-4265198" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Accounting Methods\/Procedure Cases The format for the paper is that of a", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/accounting-methodsprocedure-cases-the-format-for-the-paper-is-that-4265197" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }} }