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I am not surprised that Donnie Trump won’t release his tax returns. He is a business man at heart, and does what he needs to do to keep the Trump Empire afloat. I’m betting his presidency is a publicity stunt to further his own agenda. And politics and business tend to share the same survival of the fittest mentality.
I’m also not that offended by his unwillingness to publicize his tax returns. A person’s financial situation is a private matter, and tax returns can provide a wealth of information to those who know how to read them. In the wrong hands, a lot of damage can be done to a person’s financial records. In addition, as an accountant, I know that there are perfectly legal ways for Donnie to avoid paying federal taxes, or whatever claim it is that he made (I don’t pay much attention to him, as I have more important things to do). Here’s what I envision what Trump’s tax return may look like.
As large as his income may be, his operating losses from his bankrupt businesses are even higher, thus negating all his income, possibly even making it negative. The adjusted gross income (AGI) is a calculated total that incorporates adjustments to a person’s income, including any business net income or loss. If the business net loss is large enough, it can completely negate a person’s income and result in a negative AGI. Donnie can also carry forward some of those losses into future years, thus creating little to no taxable income for years to come, thus no federal taxes.
Now I don’t know if my theory on his taxes is anywhere close to the truth, but I imagine that his lawyers and accountants know how to take advantage of tax loopholes to Donnie’s benefit. And even if his taxes are not as how I theorize, I don’t care enough about him as a person to be angered by his lack of political experience.
So AT&T and Time Warner, Inc. are merging to create a behemoth media company. AT&T is getting the rights to a lot of great intangible assets that cannot be easily recreated, such as cable T.V. shows (specifically, shows on HBO, TNT, TBS, and CNN, amongst others), and a slew of movies (my personal favorites include the Dark Knight trilogy and the Harry Potter movie series, amongst others).
There are so many companies under the “Time Warner, Inc.” name that I can’t even begin to figure out the many ways that this merger will help AT&T.
I also believe that this merger will eventually cause the combined company to collapse. $85.4 billion is a huge amount of money, no matter who you are. I don’t know how AT&T will be financing the purchase, but I imagine that some portion of it will either be debt or equity (shares). AT&T will either owe a lot of money to their lenders, or will have to appease a lot of shareholders.
Their fate will be similar to that of Sears – Kmart, which is on the brink of bankruptcy. AT&T Time Warner will be a huge company with a lot of overhead and expenses.
Since I started working as an accountant at a local construction company in 2010, a person named Adam Johnson from Intermedia Marketing Solutions calls our office every three or four months regarding a delinquent bill for providing internet listing services to the company. I know that the company has never used their services in my time with the company. (more…)
I was skimming through the Fall 2013 continuing education classes catalog at SUNY Broome and noticed that there weren’t any classes on basic accounting, construction accounting, or CPA exam review. When I skimmed through the SUNY Binghamton continuing education classes catalog, I again noticed a lack of accounting classes. (more…)