Happy Thanksgiving

Come on in to our office for a Thanksgiving treat!

Elements of a Valid Contract

1. An agreement consisting of an offer and acceptance 
1. not valid offers
1. expression of opinion
2. preliminary negotiations
3. statement of intentions
4. advertisements
5. social invitation
2. exceptions of silence as exception
1. silence condition of acceptance & offeree remains silent intending to accept.
2. Previous dealings - silence was acceptance
3. exercise dominion over the goods sold
2. Consideration
1. Bargained for exchange
1. must be a legal detriment
1. when one refrains from doing what one has a legal right to do. OR
2. when one does what one has a legal right not to do.
3. Among competent parties
1. classes of persons who do not have the capacity to contract
1. insane persons
2. intoxication
3. minors
4. With a legal purpose
1. Fraud
1. intentional misrepresentation
1. False material misrepresentation of fact
2. prove scienter 
3. intent to induce reliance of the plaintiff
4. justifiably relied on that statement
5. you suffered damages because misrepresentation

If you have any questions....ask and comment.

Deloitte article on RE

Top ten of real estate in 2012:
http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/FSI/US_FSI_CommercialREOutlook2012_102011.pdf

Great article.

NEW mileage rates for 2011

How much can you deduct when you use a vehicle for business?

• 55.5 cents per mile.  The previous deduction was 51 cents for every mile.  So more deduction but I wonder how the IRS came up with the 1/2 of a cent?

How much can you deduct when you use a vehicle for medical or moving expenses?

• 23.5 cents per mile.  The previous deduction was 19 cents a mile.  

Need Help?

Comment on my post and ask any question you may have about Quickbooks.  For those who do not know what Quickbooks performs,  please comment on this post by asking, "What is Quickbooks?"  I will be happy to explain!

Computer Day

This weekend we worked on all our computers to get them up and running.  Connecting the computers to the printer and the internet.  Hopefully we will have no problems with them as we go through this upcomming tax season.  We will soon be downloading the latest ProSeries tax onto all of our computers.  We are waiting for ProSeries to finish all their upgrades and then we will download ProSeries 2011!! 

Audit risk model

• Inherent risk
•  Likelihood of error in segment
• Detection risk
•  Risk that the auditor will conclude an error that does not exist when in fact the error does.
•  Control risk
•  Clients internal controls fail to detect an error. 

2010 Property Tax Rates: Districts in Johnson County, IN

	Summary Statistics
	Property Tax Rates in Johnson County	Property Tax Rates in State
Highest	4.1567	6.8587
Lowest	1.3345	0.6143
Median	2.06	1.93

These statistics come from http://www.stats.indiana.edu/taxframe.html

Stock Dividends vs Stock Splits

• Stock Dividends
• Stock Divedends result in more shares being issued as dividend(No cash flow is involved). 
• Small stock dividends involve issues of less than 20%-25% of stock.
• The accounting for small stock dividends is based on the fair market value of stock issued.
• The accounting for large stock dividends(more than 20%-25%) is based on the par value of stock issued.
• Stock Split
• When a stock splits the par value of each share decreases; the number of shares increases.

Review

1. PV of a share
1. Div = does not change
2. Split = PV decreases
2. Total number of shares
1. Div = increases
2. Split = increases
3. Stockholder's Equity
1. Div = Less retained earnings & more of stock 
2. Split = same amount of stock & retained earnings
4. Journal entries required?
1. Div = YES
2. Split = NO

liquor, tobacco, & gasoline tax

Japan has a national liquor tax that is paid by consumers when they purchase alcoholic beverages.  National, prefectural and municipal tobacco tax are paid by consumers when they purchase tobacco products.  A national gasoline tax is paid by consumers when they purchase gasoline.  The liquor, tobacco and gasoline taxes are included in the prices shown by shops.