Consolidated tax return with intercompany transactions

 PART 1

Greenacre Corp and its subsidiary Blueacre are calendar year corporations that keep their respective books on the accrual basis. The companies have taxable income of $300,000 and $350,000, respectively, for tax year 20×4 (before consolidation adjustments, elimination entries and charitable deductions). The following transactions are included:

  1. Land was sold by Greenacre Corp to a third party for $90,000. The land was acquired from Blueacre in 20×2. Blueacre acquired the land in 20×0 for $52,000.
  2. Greenacre Corp’s taxable income includes a $15,000 dividend Blueacre paid to Greenacre Corp.
  3. Greenacre Corp sold inventory to Blueacre in 20×5 for a realized $120,000 profit. The intercompany profit on the unsold inventory is $9,500. Greenacre Corp sold inventory to Blueacre in 20×6 for which deferred profit at the beginning of the year is $8,000. Blueacre sold this inventory to an external party. Greenacre Corp sold additional inventory to Blueacre in 20×6 for a realized $155,000 profit. The intercompany profit on the unsold inventory is $7,000.
  4. Greenacre Corp and Blueacre contribute $16,000 and $15,000 to charity, respectively.

Directions:

Calculate the consolidated taxable income and consolidated tax liability of Greenacre Corp and Blueacre for 20×6.  Then calculate the basis of Greenacre Corp’s stock at the end of 20×6, assuming that it was $1,650,000 at the beginning of the year.

Part B:

Click the link below to download the case study “Corporate Inversions: Stanley Works and the Lure of Tax Havens.”

https://cb.hbsp.harvard.edu/cbmp/pl/72497704/72497718/cc36386761a502fc38a5dabf8b2bc002

In addition to the questions at the end of the case study, use reliable sources to discuss ethical implications of tax avoidance and tax evasion, as well as the tax accountant’s role and obligations in such situations. Explain your answer in 5 pages,  Submit your answers as the second part of the portfolio assignment.

Requirements:

apa format, include introduction and conclusion, 4 references. Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit an Excel file and a Word document for grading







Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more