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Posted: March 3rd, 2022

RESERCH MEMO essay

You’re to arrange a tax analysis memo concerning the next truth sample. Your memo ought to embody 5 sections: Information, Points, Authorities, Conclusion, Assessment. A pattern analysis memo is situated in your textual content on web page 2-22. Your memo must be 1-2 pages, single spaced. You will have to quote major authority in your memo. Your task might be screened via TurnItIn, so all sources must be cited. You’re to work on this task together with your assigned companion. This task is topic to the Tutorial Honesty Coverage. You need to submit this task via Canvas (as an uploaded file) no later than 11:59 p.m. central time on March 21st.

Whitney and Ed North are avid antiques collectors. They often attend storage gross sales and flea markets and buy numerous outdated stuff. In 2019, they bought a really outdated desk for $600. The desk was in poor form and required rehabilitation. It sat of their storage for greater than a 12 months. Whitney was taking the desk aside when she discovered an outdated doc jammed right into a darkish recess of the desk. She opened the doc and far to her shock she had discovered a Picasso portray.

Whitney was very excited by the invention of this treasure. She and Ed contacted Sotheby’s, the public sale home, to get an appraisal for the portray. In December 2020, Sotheby’s authenticated and appraised the portray at $1,350,000. In April of 2021, the portray was auctioned by Sotheby’s and fetched $1,650,000 internet of charges and commissions. Whitney and Ed acquired the cash in Could of 2021.

Your supervisor requested you to arrange a analysis memo indicating how Whitney and Ed ought to deal with the invention of this doc for tax functions. Particularly, it’s best to point out the next:

Have they got taxable revenue?
If that’s the case, when have they got taxable revenue and what quantity?
What’s the character of any revenue?

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