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Can I please have help with the cases attached. I am supposed to find the issue and answer it and have codification with it. I
Can I please have help with the cases attached. I am supposed to find the issue and answer it and have codification with it. I am struggling with these three.
BREANNA STORY 2 IA Case 16: Albright Inc. has recently issued a 10% stock dividend to its existing stockholders. As a result of the issuance of the stock dividend the market price of the stock declined 25%. Albright has requested your assistance as to treating this stock dividend as a stock split. Would this be acceptable under GAAP? A Case 8: During Joseph Josephs', CPA, audit of the Belton Company's prior year's financial statements, he notices that sales and profits have fallen dramatically from their previous year highs. His subsequent (January 20, current year) discussion with John Land and Jill Her (equal 50% shareholders of the Company) indicate that John recognizes that he spent much less time in the previous year with the business than he did in prior years. He agreed to refund $100,000 of his $1 million previous year's compensation immediately, and John and Jill agreed that he would receive his original $1 million compensation in future years (as long as he re-dedicated his efforts on behalf of the company). Joseph then reduced the Belton Company's previous year's salary expense for the $100,000 refund, since the parties attributed these transactions to previous year's events. He then issued the audited financial statements on March 2, of the current year. However, on May 2, of the current year, the Sunshine bank called him and asked him to attribute the $100,000 to the current year's events (since it was paid then) and to recall and re-issue the financial statements. Should Joseph require the recall and re-issuance of the previous year's financial statements? T Case 2. Business Deductions? (Basic) For the past two years, Minsu, a Korean American, has worked as a high school physical education teacher. He is also a body-builder and a part-time graduate student in educational technology at State University. In preparing for a masters thesis he has decided to participate in Arnold's World Body-building training program and analyzing advanced technology used to help students absorb physical education. Arnold's training program has a regular faculty, curriculum, an enrolled body of students, and advanced technology in its gym equipment. Minsu earned $4,000 during the fall 20X5 as a body-builder by coming in second in the state contest. Minsu paid $3,000 in spring 20X5 for his masters' degree tuition at State University for one class on advanced computer technology and another $5,000 to participate at Arnold's. How much can Minsu deduct? Minsu knows about relevant educational tax credits and want you to focus just on the deductionsStep by Step Solution
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