Tax Accounting

" ale 10 questions for you to address. For each question you are asked to do two things:+ 1. Identify the tax issue(s) posed by the facts presented. + 2. Determine the possible tax consequences of each issue that you identify. + Your solution must be word-processed but can be presented in any manner that is clear. You may have + to do some research in your textbook (not on Checkpoint) for a couple of items. + Issue Identification Cases Spring 2020+ 1.+ Milton is an inventor who has also written several successful mystery novels. Because he didn't really need the income from the novels, Milton wrote them under an assumed name and had the royalties paid to Hammer Corporation. When Milton incorporated Hammer, he gave all the stock to his three sons. The sons are employed by the corporation, with salaries approximately equal to the royalties earned each year from the novels.+ 2.+ Ayah signs a contract to write a book for East Publishing Company in the current year. Under its terms, she receives a $5,000 advance against future royalty payments upon signing the contract. The contract provides that if Ayah does not write a suitable book or if the book's royalties are insufficient to cover the advance, she must repay any portion not earned.+