Tax case meno Research Paper Example | Topics and Well Written Essays - 1000 words

Tax case meno - Research Paper Example Normally, the cost of tools forms part of capital goods that the company requires to run its operation. Under the IRC section 263A, the uniform capitalization rule dictates that the taxpayer should produce information for all direct costs and certain in direct cost concerning tangible and real property. The law defines tangible and real property as those that lead to production such as to construct, build, install, manufacture, develop, improve, create, raise or grow (DiNardo, Baldwin and Harris 106). From this provision of the law, it is evident that the allowances that the company pays to cater for the cost of various tools of trade fall under capital goods and that they are tangible in nature. If this were the case, the provision of IRC section 263A, states that the taxpayer should treat such information as direct because they affect the cost of capital. It follows therefore, that Cambro Construction Company should treat the allowances it reimburses as cost for capital goods. Comb ro Company should treat this case as cost associated with tangible assets, which it uses to aid production. Therefore, the tax treatment for this case should be ordinary. Under this category, the taxpayer should accumulate all the information concerning this cost and treat them a cost of assets used in production. Thus, Cambro Construction Company should prepare tax report concerning the accumulated cost it incurred to reimburse cost for the capital goods. For a cost to qualify as capitalization cost under IRC section 263A, it must fall into the capital accounts as defined by section 1.446-1(c) (1) (ii). This provision tends to define the treatment of cost incurred by a company to buy assets or other related costs. The section 263A states that: Except as otherwise provided, direct and indirect costs that directly benefit or are incurred by reason of the performance of production or resale activities must be capitalized to the property produced or acquired for resale (DiNardo, Baldwi n and Harris 106). The provision of section 1.263A-1(e) (3) (iii) gives examples of indirect costs which the taxpayers should capitalize are tools and equipment. Further, this provision indicates that the producers must capitalize costs other interest whether incurred before, during, and after production period of property. Arguing from this provision, the cost incurred by Cambro Construction Company to reimburse the capital cost of its carpenters fall under the indirect costs. Thus, Cambro Construction Company should treat such indirect cost as provided for in the section 263A of the IRC. The must record this information whether it incurred it before, during, or after the production period. This implies that the law does not exempt the company from compiling tax information concerning the property that it acquired during its construction period. Largely, the fact that Cambro Construction Company does its activities with an aim of reselling them further makes it necessary for it to capitalize this cost. Cases bordering incidental repair of property seems to be closer to the above facts but not exact. In incidental repair, the taxpayer deducts a given cost to repair of the property with a view of prolonging the use of that property. Section 167 provides the treatment of such repairs. When a taxpayer makes full replacement for the property, the treatment that follows should be capitalization or depreciation as

Why juveniles run away, and what should be done with them when they Research Paper

Why juveniles run away, and what should be done with them when they are cought - Research Paper Example The issue of children running away from their homes has become popular in recent time due to their ever-increasing numbers. It is estimated that about one and a half million juveniles go missing from their homes, of which, only less than 20% returns into their homes (Zhang, Antonio, David & Victor, 2007). They also assert that about 12% of the youths in the united states run away from their homes at least once before they become adults due to various reasons that shall be discussed below. According to Chapple, Johnson & Whitbeck (2004), youths who have problems that are related to academic achievement, police contact, peer involvement shows high levels of juvenile run away. Most of the homes whereby juveniles run away are associated with limited supervision, limited help in schoolwork, limited opportunity to discuss personal problems and lack of emotional support in times of difficulties. Whenever there is limited support from family members, juveniles experience increased depression that leads to negative life that results to run away in search for a better environment to accommodate them. In some cases, families with high rates of runaway children are those whereby the parents are drug and alcohol addicts therefore they have less time to cater for the needs of their children (Sanna., Kimberly & Gregory, 2005). A high percentage of these families are those that give the children less social and economic support as they face the difficulties of growing up into adulth ood. Some parents and guardians are known to abuse their children excessively, leading to lots of discomfort and subsequently runway in search of freedom in the streets or elsewhere (Elizabeth, Andrienne, Gerald, Kathryn, Andrew, Jonathan & Cheryl, 2010). Continuous use of illegal drugs is also associated with the reason why the juveniles run away from their homes. Drug and alcohol abuse is strongly linked as one of the reasons why juveniles