SLL has a partner, Dick, who is involved in a nasty divorce. This partner’s soon-to-be former wife Georgia has a very successful company. He feels his wife is trying to hide income from him. Dick asks you if a forensic accountant would be helpful in this situation. You do some research for Dick, and put together a report including the following:
1. A description of what forensic accounting is,
2. 4 examples of where forensic accounting may be used,
3. Job requirements for forensic accountants, including whether they should have auditing experience and whether they should carry the CPA credential
4. Your education opinion as to whether a forensic accountant would be helpful to Dick – supported with research.
X Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals):
A- Cash: $70,000;
B- Inventory: FMV-$20,000 Basis-$20,000 Mortgage-$10,000;
C- Inventory: FMV-$30,000 Basis-$15,000 Mortgage-$40,000;
D- Capital Asset: FMV-$500 Basis-$2,800; (Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.’s basis was $2,800).
E- Capital Asset: FMV-$10,000 Basis-$4,000.
The Gain or Loss recognized by E is _____.
In transferring the domestic performance evaluation system into the international environment, MNEs _____.
(a) are creating a more expensive performance evaluation system
(b) miss significant foreign events that could affect performance
(c) are taking into consideration that there are strategic differences in subsidiaries
(d) are sacrificing comparability for understandability.
