Problem I (10 points) The Executive Committee of a company meets monthly. This month's agenda includes...

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Problem I (10 points) The Executive Committee of a company meets monthly. This month's agenda includes the following topics: a. Introducing a revolving credit plan at its retail outlets. At the time, the primary way of acquiring the company's product involves a cash payment or use of a major credit card (e.g., American Express, Master Card, VISA) b. Consider the advantages and disadvantages of receiving a cash dividend from a 90% owned subsidiary or borrowing money in order to finance the revolving credit plan described above. c. A discussion on the sale of stock. The stock was acquired as an investment 2 years ago and has increased in value by 30%. d. Increasing its level of charitable giving to specific charities based on a survey of employees. e. Attempt to resolve a disagreement between its foreign distribution division and its domestic manufacturing operation. The dispute deals with the price being charged for goods being moved between the divisions and the hiring of individuals from specific target groups by the domestic manufacturing division. IDENTIFY THE FEDERAL INCOME TAX IMPLICATIONS IN THE ABOVE SITUATION. NOTE: Some of the implications are more valuable than others. You should be able to identify at least FIVE federal income tax implications. to a divide Problem I (10 points) The Executive Committee of a company meets monthly. This month's agenda includes the following topics: a. Introducing a revolving credit plan at its retail outlets. At the time, the primary way of acquiring the company's product involves a cash payment or use of a major credit card (e.g., American Express, Master Card, VISA) b. Consider the advantages and disadvantages of receiving a cash dividend from a 90% owned subsidiary or borrowing money in order to finance the revolving credit plan described above. c. A discussion on the sale of stock. The stock was acquired as an investment 2 years ago and has increased in value by 30%. d. Increasing its level of charitable giving to specific charities based on a survey of employees. e. Attempt to resolve a disagreement between its foreign distribution division and its domestic manufacturing operation. The dispute deals with the price being charged for goods being moved between the divisions and the hiring of individuals from specific target groups by the domestic manufacturing division. IDENTIFY THE FEDERAL INCOME TAX IMPLICATIONS IN THE ABOVE SITUATION. NOTE: Some of the implications are more valuable than others. You should be able to identify at least FIVE federal income tax implications. to a divide