The acquiescence policy of the IRS extends to the
A) U.S. Supreme Court decisions.
B) U.S. Tax Court regular decisions.
C) U.S. District Court decisions.
D) both B and C
D) both B and C
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Kenneth wants to be a master chess player. However, something is impeding his progress toward this goal. Kenneth works hard when he sits down to practice at the chessboard, and is willing to practice for months or years, however long it takes to become a master chess player. The problem seems to be he does not really know what and how to practice to achieve his goal. According to this scenario, what element of motivation is Kenneth missing?
a. Energy b. Direction c. Maintenance d. Leadership
The steeper an OC curve, the better it discriminates between good and bad lots
Indicate whether the statement is true or false
Welch Inc. has used a fiscal ending September 30 as its taxable year since its incorporation in 1988. The shareholders have decided to shut down Welch's business and dissolve the corporation on March 31. Which of the following statements is false?
A. Welch's final tax return will include its income from January 1 to March 31. B. Welch's final tax return will be a short-period return. C. Welch's final tax return will include its income from October 1 to March 31. D. None of the above is false.
Interstate Transport has a target capital structure of 50% debt and 50% common equity. The firm is considering a new independent project that has a return of 13% and is not related to transportation. However, a pure-play proxy firm has been identified that has a beta of 1.34. Both firms have a marginal tax rate of 40%, and Interstate's before-tax cost of debt is 12%. The risk-free rate is 10% and the market risk premium is 6%. The firm should:
A. Be indifferent between accepting or rejecting; the firm's required rate of return on the project equals its expected return. B. Accept the project; its return exceeds the risk-free rate and the before-tax cost of debt. C. Accept the project; its return is greater than the firm's required rate of return on the project of 12.62%. D. Reject the project; its return is less than the firm's required rate of return on the project of 16.9%. E. Reject the project; its return is only 13%.