ACCOUNTING 332
TAXATION OF BUSINESS ENTITIES
Syllabus, FALL 2014
Instructor: Devona Newport, CPA
axes are a key component of the global economy. Taxation is pervasive, complex
and dynamic. A significant portion of business and individual wealth can be
consumed by tax costs. Understanding the potential tax costs of a transaction is
critical to economic decision-making as nearly every economic decision involves
tax considerations. The study of taxation is important for any business major, but it has
added importance for students interested in careers in accounting. This course is the
comprehensive study of mostly federal United States-based taxes. Topics focus heavily
on taxation as it relates to business entities (as opposed to individuals) and includes
gross income, business deductions, cost recovery, property exchanges, gains and losses,
multi-state taxation, international taxation, tax sources, tax research and tax
communication.
ACCTG 503 is strongly recommended as it is the study of mostly individual federal United
States-based taxes. The interplay between individual and entity taxation is important for
accountants to know and critical for tax practitioners to understand.
Course Objectives:
The primary objective is to help you understand the role of taxation in economic decision
making. I want to assist you in gaining an understanding of fundamental tax law and
help you be able to apply essential tax planning concepts. I will introduce a broad range
of tax issues and their impact on a variety of taxpaying entities. While the primary focus
is on the federal income tax, students will have an opportunity to acquire knowledge that
is transferable to taxes imposed by other taxing authorities. The knowledge and skills
provided should facilitate future learning in tax even if you do not expect to become a
tax professional.
These skills are often the sole objective of a course like this one and are generally part of
the uniform CPA exam. However, mastering only these skills is inadequate if you want
to be an effective professional. Today’s accounting graduates must possess higher-level
skills such as the ability to analyze, synthesize and critically evaluate information rather
than just know how to prepare it. I will strive to make sure you meet this challenge and
help you acquire the added skills to be effective decision makers and advisors. In
addition, this course has a substantial component involved in developing your skills in
communicating your tax knowledge to others much in the way a tax advisor would.
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Learning Objectives:
The College of Business at SDSU has goals for out BSBA students (those addressed by
this course are italicized):
•
Effective Communicators
•
Critical Thinkers
•
Able to Analyze Ethical Problems
•
Global in their perspective
•
Knowledgeable about the essentials of business
The Charles W. Lamden School of Accountancy (SOA) has learning objectives for each
undergraduate accounting major. A complete list of these can be found on the SOA’s
website. This course intends to address the following of those learning objectives:
1. Determine the income tax of taxable entities in order to assess the effects of
personal, investment and business transactions on their tax and after-tax cash
flows.
2. Prepare professional written reports for accounting related topics
3. Apply ethical rules, theories and regulatory guidelines to the practice of public,
private and tax accounting; understand the need for professional integrity and
objectivity.
Learning Outcomes:
At the end of this course students should be able to:
1. Comprehend the rationale for tax laws by differentiating the types of tax bases
and weighing the multiple objectives tax policymakers consider when developing
new tax law.
2. Apply analytical reasoning tools to assess how taxes affect economic decisions for
business-related taxpaying entities:
a. Through the amount and timing of income recognition and deductions
b. Related to property transactions that generate recognized, deferred, or no
taxable gains and losses
c. Related to organization form decisions.
3. Develop a fundamental understanding of the components of taxable income
determination across taxable entities so that the student builds a foundation for
effectively learning future tax laws
4. Draw supportable conclusions regarding tax issues by using research skills
(including accessing and interpreting sources of authoritative support) to identify
and evaluate opportunities
5. Communicate tax conclusions in a clear and concise manner to relevant
stakeholders.
Course Material:
Essentials of Taxation, Individuals and Business Entities 2015 Ed., (Smith, Raabe,
Maloney, Young)
CengageNOW.com. Information on how to sign up for CengageNOW.com will be posted
to Blackboard.
Prerequisites:
Upper Division Business Major, Business Minor, or other approved Non-Business Major
Academic Honesty:
Accounting is a profession that depends on trust – individuals, companies and society as
a whole place reliance on the decisions and opinions of accountants. For most of history,
accountants were viewed among the most trusted members of society. In recent years,
certain events have eroded this trust. Rebuilding this trust will take a long time but can
be accomplished if future accountants ensure that such lapses do not recur. I take my
role in this effort very seriously (and I expect you will as well).
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html)
states that unacceptable student behavior includes “cheating, plagiarism, or other forms
of academic dishonesty that are intended to gain unfair academic advantage.”
Unprofessional conduct adversely impacts your fellow students, the accounting faculty,
the Charles W. Lamden School of Accountancy, SDSU, and the accounting profession.
The Charles W. Lamden School of Accountancy takes academic honesty very seriously
and vigorously enforces university policy related to any such infractions. Any student
suspected of academic dishonesty will be reported to the SDSU Center for Student Rights
and Responsibilities; if found responsible, the student could receive an “F” on the
assignment or an “F” in ACCTG 332.
Plagiarism
According to the SDSU Academic Senate policy on cheating and plagiarism:
2.2 Plagiarism shall be defined as the act of incorporating ideas, words, or specific
substance of another, whether purchased, borrowed, or otherwise obtained, and
submitting same to the University as one’s own work to fulfill academic
requirements without giving credit to the appropriate source. Plagiarism shall
include but not be limited to (a) submitting work, either in part or in whole,
completed by another; (b) omitting footnotes for ideas, statements, facts, or
conclusions that belong to another; (c) omitting quotation marks when quoting
directly from another, whether it be a paragraph, sentence, or part thereof; (d)
close and lengthy paraphrasing of the writings of another; (e) submitting another
person’s artistic works, such as musical compositions, photographs, paintings,
drawings, or sculptures; and (f) submitting as one’s own work papers purchased
from research companies.
Because the course requires preparation of written works, the temptation to plagiarize is
stronger than in most accounting (or business) courses. When you put your (or your
group members) name at the top of the assignment, the prevailing notion is that all the
ideas, words, or specific substance are those of your own creation and not another
unless it is made obvious to the reader that is not the case.
As stated above, I reserve the right to assign a grade of F in ACCTG 332 if you
plagiarize. To reduce the temptation, we will use Turnitin in Blackboard for written
submissions.
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Assessment:
Your primary assessment will be through exams, case studies, quizzes, and homework.
Exams, homework, cases, etc. will be given on the dates listed in the course calendar.
Quizzes are not listed in the course calendar.
Assessment
Midterm Exam I
Midterm Exam II
Comprehensive Final Exam
Quizzes
Cases/Projects
Homework
Total for course
% of
grade
20%
20%
30%
10%
10%
10%
100%
Midterm and Final Exams:
All exams will be cumulative for material presented up to that date. You MUST
take your exam during the scheduled exam time for your section. There are no
provisions for missed exams other than those required under University policy. My
exams are long and difficult and may often test not only your ability to master the
material but also to efficiently communicate your knowledge back to me. Time
management is an important element to success on my exams.
Quizzes:
The quizzes are intended to be a test of how thoroughly you have understood previously
discussed material. They are intended to assist you in preparing for the exams. Quizzes
cannot be made up; no exceptions. It is my intention to have 5 quizzes and drop the
lowest quiz score. If you miss a quiz, that quiz will be the one I drop.
Cases/Projects:
The cases may focus on: (1) successfully researching a tax issue using SDSU’s online tax
research system (RIA Checkpoint); (2) completing tax return or related information in
good form; (3) some combination of the above or (4) some other topic. The cases will
be prepared during time outside of class. Typically, your case solutions will be collected
in class or using Turnitin in Blackboard.
Homework:
Homework assignments are largely prepared using the CengageNOW online homework
manager associated with your textbook. In some instances, homework may also be due
in written or typed format. Due dates will be listed on the course calendar. Late
homework will not be accepted. I will drop your lowest homework grade.
Results:
Exams and quizzes are not handed back during class time for review by students. If you
wish to go over your results, you must make an appointment to review the item in my
office.
There is no makeup or extra credit work if you did not pass or get the grade you wanted.
Please don't ask for special treatment because if I give it to one student, I have to offer
it to all students in the class.
Attendance:
I do not take attendance. If you are unable to attend class, do not expect that I will
make up that lecture for you individually in office hours.
Office Hours:
I will post office hours on Blackboard. However, I prefer that you make an appointment
to see me. This reserves a time for you and gives you priority over students who “drop
in” without an appointment. However, especially around exams, I will limit the length of
any scheduled appointment in order to accommodate all students.
I am happy to help you but I expect you to come prepared to meetings during office
hours. Try and write out your questions beforehand. You may also e-mail me your
questions. If I am able to answer your question by e-mail I will do so. More complex
questions are best addressed in person.
Professional Behavior:
Students are expected to behave in a professional manner at all times. A key
component of professionalism is respect for the thoughts, feelings, and needs of others.
I will not tolerate disrespectful behavior towards a fellow student.
I will respect your time and ask that you respect mine. Please do not e-mail me
questions that are adequately addressed in class, in Blackboard, or on the SDSU website.
I reserve the right to ignore e-mails that ask such things as “Are we having a quiz
today?”, “When is the final?”, or “Please explain Chapter 4 to me.”
Students with Disabilities:
If you are a student with a disability and believe you will need accommodations for this
class, it is your responsibility to contact Student Disability Services at (619) 594-6473.
To avoid any delay in the receipt of your accommodations, you should contact Student
Disability Services as soon as possible. Please note that accommodations are not
retroactive, and that accommodations based upon disability cannot be provided until you
have presented your instructor with an accommodation letter from Student Disability
Services. Your cooperation is appreciated.
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