ACCOUNTING 460
INCOME TAX ACCOUNTING
FALL 2010
INSTRUCTOR:
OFFICE:
OFFICE HRS:
PHONE:
E-MAIL:
WEBSITE:
Dr. Bob Kilpatrick, CPA
FCB 421
M&W 10:15-11:15, Th 10:00-11:00,and by appt.
523-7399
bob.kilpatrick@nau.edu
www.franke.nau.edu/facstaff/kilpatrick-b
PREREQUISITE: Business Major Status
MATERIALS:
West’s Federal Taxation, Taxation of Business Entities, (2011)
Dr. Bob’s 460 Lecture Notes (Available for purchase at FCB Support Services)
COURSE OBJECTIVES: The focus of the course is on the basic concepts of taxation. My goal is to
provide a tax education, not tax training. That is, you should develop the ability to determine the
"correct" treatment of items affecting tax liability without resorting to rote memorization of every aspect of
the tax law. (Even so, some memorization is necessary to gain a basic understanding of the income tax
law.) This approach should provide a better understanding and appreciation of how the tax laws affect
business and financial decisions.
Accordingly, the specific objectives are:
 To introduce students to a broad range of tax concepts
 To introduce students to a broad range of types of taxpayers
 To emphasize the role of taxation in the business decision-making process
 To provide students with the ability to conduct basic tax research
 To provide students with the ability to apply basic tax planning techniques to a wide range of
situations
 To provide students with a knowledge of the interrelationship and differences between financial
accounting and tax accounting
GRADING:
Exams (4 @ 100 each)
Research & Planning Cases
Hand-in Problems
Online Homework
Online Quizzes
Career Development Report
Total Points Possible
400
40
50
35
20
10
555
Grading scale:
A = 500 points (90%);
B = 438 points (79%);
C = 377 points (68%);
D = 310 points (56%).
ACC 460 Syllabus, p. 1
ADDITIONAL COURSE INFORMATION:
EXAMS: Exams will consist of both multiple choice questions and problems. Multiple choice questions are ruleoriented and follow the general format and rigor found in the CPA exam. Problems are oriented more toward
application of rules and the role of taxation in the business decision-making process.
Only approved absences will be accepted as reasons for missing a regularly scheduled exam. An approved absence
will be given for illness, death in your family, or institutional purposes, provided you notify me prior to exam time. If
you receive approval for a missed exam from me, a comprehensive exam given at the end of the semester will be
substituted for the missed exam. Absent such approval, a grade of zero will be assigned as your test score.
Note: Students are encouraged to work together on these two outside projects. You may work in pairs (i.e.,
two students maximum on the project) and turn in a single paper.
RESEARCH AND PLANNING CASES: Tax research and planning cases will require original research to be
performed using our library resource materials (either hard copy or internet forms). Cases must be typed and follow
the format discussed for each during class. Cases will be graded for both technical accuracy and presentation. Due
dates are noted on the daily schedule. Except for extraordinary circumstances (in the accounting sense - both
unusual and infrequent) for which I have given prior approval, no late cases will be accepted.
HAND-IN PROBLEMS: Hand-in problems are essentially “mega” homework problems. These may be hand-written.
Point allocations are noted on the assignment schedule; problems will be graded for correctness. Due dates are
noted on the daily schedule; late problems are subject to the same criteria as the research and planning cases.
Note: We are using the text’s online homework through Aplia (www.aplia.com). You should have an Aplia
Access Card bundled with your textbook. Registration instructions are provided on a separate document and
on our course webpage.
ONLINE HOMEWORK: Homework assignments must be completed on our Aplia course website by the due dates
listed on the Aplia schedule. (These are also listed on the daily assignment page that follows; however, note that all
due dates are 8:00 p.m. the night prior to the class period listed. the homework assignment by 8:00 pm the night
before class. I am mostly interested in you making a good faith effort in completing your homework rather than getting
it completely correct on your first attempt. Consequently, to earn the 35 homework points, you must average only
60% on the homework assignments. The 35 points is scaled down for averages below 60% (e.g., 50% average earns
30 points (35 x 50%/60%).
ONLINE QUIZZES: On-line chapter quizzes are due throughout the semester, with due dates listed on the Aolia
Schedule. Note that these dates do not correspond with specific class meetings, so I have noted the weeks due on
the following daily schedule.
CAREER DEVELOPMENT REPORT: The NAU Accounting Area and Accounting Advisory Council will host our
annual Accounting Career Panels on Friday, October 1, 2:00 – 5:00 (including the reception), location TBA. Details
will be discussed in class later. Attendance is mandatory for Accounting majors; Finance and other majors may
attend or complete an alternate, commensurate career-oriented project, which will be provided on a separate
document.
SCHOLASTIC DISHONESTY: Scholastic dishonesty will not be tolerated. For a description of actions that constitute
scholastic dishonesty, see the list provided under the Integrity section of the FCB Expectations of Behavior at
http://www.franke.nau.edu/StudentResources/CodeOfConduct/. The full consequences of scholastic dishonesty will be
pursued, consistent with the University policy on scholastic dishonesty. At a minimum, you will receive an “F” in this
course for scholastic dishonesty. No drops are allowed for students who receive an F for scholastic dishonesty.
UNIVERSITY POLICY ON COURSE REPEATS: If you are repeating a course, you must complete a Course Repeat
form and turn it in to the Registrar's office no later than the ADD deadline of the semester; otherwise, the original grade
will not be removed from your cumulative GPA.
UNIVERSITY POLICY STATEMENTS on (a) safe environment, students with disabilities, institutional review board,
academic integrity, academic contact hour policy, and (b) classroom management: Please see, respectively,
http://www2.nau.edu/academicadmin/UCCPolicy/plcystmt.html; http://www4.nau.edu/stulife/handbookmanagement.htm.
ACC 460 Syllabus, p. 2
ACC 460 TENTATIVE DAILY SCHEDULE
FALL 2010
DATE
TOPIC/READING ASSIGNMENT
Week 1
8/30 M
Introduction to taxation, Ch. 1
9/01 W
Week 2
9/06 M
9/08 W
ONLINE APLIA HOMEWORK
(Due by 8:00 p.m. night PRIOR)
Ch 1 Tax Computations, Business
Entities, Planning Basics
LABOR DAY
Ch 1, con’t.
Ch 1: 17,18 & add’l problems
9/13 M
Ch 2,Tax Law & Research
Ch 1 Quiz
Ch 2 Quiz
Ch 1: 20(b),21 & add’l problems
9/15 W
Ch 2, con’t.
Ch 4, Gross Income
Week 3
Week 4
9/20 M
9/22 W
Ch 5 (§§5.1-5.6), Business Deductions
Ch 6 (omit §6.2 & pp 24-28), Losses
and Limitations
Week 5
9/27 M
EXAM 1
10/01 F
ACCOUNTING CAREER PANELS
2:00 – 5:00
Ch 4 Quiz
Ch 4: 9,14,17,22,24,25,32,33 &
add’l problem
Ch 5: 8,11,13
Ch 7, Property Transactions (Basis,
Gain/Loss, Exchanges), §§7.1-7.3
Ch 7, §§7.4-7.6
Ch 7: 5,12,14,16,18
10/11 M
Ch 5 (§§5.7-5.10), Cost Recovery
Ch 7 Quiz
Ch 5 Quiz
Ch 7: 29,30,34, & 28 (last)
10/13 W
Ch 5, con’t
Ch 5: 18,20,23,24,25,29,35
10/06 W
Week 7
Week 8
10/18 M
10/27 W
Week 10
R&P Case 1 (10
pts)
R&P Case 2 (10
pts)
Ch 8 Quiz
Ch 8, Property Transactions (Capital,
§1231, Recaptures)
Ch 8: 15,17,23,25,26,27 & add’l
problems
10/20 W
Week 9
10/25 M
Prob 1 (10 pts)
Ch 2: 4,5,7,16,19,27
Ch 6 Quiz
Ch 6: 5,6,13,15,17,28,29,35 & add’l
problem
9/29 W
Week 6
10/04 M
TURN-IN
Prob 2
(10 pts)
R&P Case 3
(10 pts)
EXAM 2
Ch 9, Corporations (Organization,
Operations)
Ch 9 Quiz
Ch 10 Quiz
ACC 460 Syllabus, p. 3
DATE
TOPIC/READING ASSIGNMENT
11/01 M
Ch 10, Corporations (Distributions)
11/03 W
Ch 11, Partnerships & LLCs
Week 11
11/08 M
Ch 12, S Corporations
11/10 W
Ch 15, Comparative Forms of Doing
Business
Week 12
11/15 M
ONLINE APLIA HOMEWORK
(Due by 8:00 p.m. night PRIOR)
Ch 9: 7,9,12,13,14,16
Ch 9: 28,33
Ch 10: 1,7,16,20
Ch 11 Quiz
Ch 12 Quiz
Ch 11: 2,4,9,11,12a,13,16
Prob 3 (10 pts),
Ch 12: 9,11,13,25
Ch 15 Quiz
Ch 15: 1,6,25,27,37,38,39,40
11/17 W
EXAM 3
Week 13
11/22 M
Ch 16, Intro to Individual Tax
11/24 W
NO CLASS
SAFE TRAVELS
Week 14
11/29 M
Ch 16, con’t
Ch 16 Quiz
Ch 16: 1,2,4,5,6,8,9
12/01 W
TURN-IN
Ch 17, Individuals as Employees and
Proprietors
Week 15
12/06 M
Ch 17, con’t
12/08 W
Catch-up if necessary
Ch 16: 12,15,21,22,24,25,26,27
Ch 17 Quiz
Ch 17: 2,3,16,23,25
Prob 4 (20 pts)
R&P Case 4 (10
pts)
FINAL EXAMS
12/13 M
§ 1, 12:30 – 2:30
12/14 T
§2, 3:00 – 5:00
ACC 460 Syllabus, p. 4