Business Memo

You will need to make a business Memo using the following images, and the template provided. You have 1 hour to complete this business memo. Absolutely no error and no AI should be used.

Davis & Butler, CPAs
Memo
To:
Mary B. Davis, CPA
From:
Bill Walters, Staff Accountant
CC:
Pavement Development Company, LLC
Date:
6/14/2016
Re:
1031 Exchange Requirements
Facts
Pavement Development Company, LLC (“PDC”) owns real property in the state of Wyoming. The
property is raw land that is currently held for investment. PDC is interested in selling the property and
has interest in securing a hotel property in Mexico.
Issue
PDC would like to enter into a tax-free exchange of the property in Wyoming to the property in Mexico.
Does the Internal Revenue Code allow tax free exchanges to property outside the United States?
Analysis
IRC §1031(a)(1) provides that “No gain or loss shall be recognized on the exchange of property held for
productive use in a trade or business or for investment if such property is exchanged solely for property
of like kind which is to be held either for productive use in a trade or business or for investment.
The requirement that the relinquished property be held for investment or for use in a trade or business
is independent of a similar requirement on the target property. In other words, real property held for
investment can be exchanged for real property used in a trade or business.
However, IRC §1031(h)(1) provides that “real property located in the United States and real property
located outside the United States are not property of a like kind. If the property is not considered like
kind, no tax free exchange is available.
Conclusion
PDC will not be allowed to do a tax-free exchange from US property into property located in Mexico.
1
ACCTG 390W
Composition &
Business Memos
College of Business Administration
Agenda
•
•
•
•
Composition
Grammar Review
Business Memos
Quiz on Composition, Grammar, & Business
Memos
College of Business Administration
Lesson Objectives:
• Demonstrate an understanding of and be
able to properly use (or avoid) the following
•
•
•
•
•
Nouns
Pronouns
Verbs
Prepositions
Plague Words
College of Business Administration
Nouns
Definition: Name of a Person, Place, Thing or
Idea
Examples: James, Princess Dianna, Spanish,
God, Middle East
College of Business Administration
Categories of Nouns
•
•
•
Count Nouns
Mass Nouns
Collective Nouns
College of Business Administration
Count Nouns
Count Nouns name anything that can be
counted.
Four trees, a few dishes, a dozen buildings…
College of Business Administration
Mass Nouns
Mass Nouns (Non-count Nouns) are things
that can’t be counted.
Air, water, energy, blood…
College of Business Administration
Collective Nouns
Nouns that are composed of more than one
item or individual but can take a singular
form.
Jury, team, class, herd…
College of Business Administration
Pronouns
• A word that stands for or refers to a noun:
• Example: Erica will select whomever she
pleases.
• Types of pronouns
•
•
•
Personal
Demonstrative
Relative
•
Indefinite
College of Business Administration
Types of Pronouns
•
Personal
•
Examples: I, me, my, he, she, it, we…
•
•
Demonstrative
•
Examples: This, that, these, such…
•
•
•
That is incredible!
Such is my belief.
Relative
•
Examples: Who, whoever, which, that…
•
•
I wish it was Friday.
The athlete who practices the most usually does the best.
Indefinite
•
Examples: Anybody, somebody, all, each, every, some, none, one…
•
Everyone is wondering if any is left.
College of Business Administration
Types of Pronouns
• Reflexive – The reflexive pronouns indicate that the
sentence subject also receives the action of the verb.
• You paid yourself a million dollars?
• She encouraged herself to do well.
• Whenever there is a reflexive pronoun in a sentence there
must be a person to whom that pronoun can “reflect.”
• Please hand that book to myself
• Incorrect because there is no “I” in that sentence for the “myself” to
reflect to
College of Business Administration
Types of Pronouns
• The untriggered reflexive. “Myself” tends to
sound weightier, more formal, than me or I,
so it has a way of sneaking into sentences
where it doesn’t belong.
• Bob and myself I are responsible for this decision.
• These decisions will be made by myself me.
• If you have any questions, please
contact myself me or Bob Jones.
College of Business Administration
Pronouns
• Can be troublesome when the pronoun is
compounded with something or someone
else
• Grandma left Jayden and I her rocking chair
• What pronoun form you would use without
adding the other person
• Grandma left me her rocking chair
• Grandma left Jayden and me her rocking chair
College of Business Administration
Pronouns
• The need for pronoun-antecedent agreement
can create gender problems.
• A student must see his counselor before the end
of the semester.
• What if some of the students are female?
• One can pluralize, in this situation, to avoid the
problem:
• Students must see their counselor before the
end of the semester.
College of Business Administration
Pronouns
• Or, “A student must see his or her counselor. . .”
• Too many his’s and her’s eventually become annoying.
• Trying to conform to the above can lead to a
great deal of nonsense. It is regarded as being
correct to say
• Somebody has left their bag on the floor.
• but many people would object its being written that
way because somebody is singular and their is plural.
College of Business Administration
Pronouns
• Remember that when we compound a pronoun
with something else, we don’t want to change its
form.
• Following this rule carefully often creates something
that “doesn’t sound good.”
• You would write, “This money is for me,” so when someone
else becomes involved, don’t write, “This money is for Fred
and I.”
• This money is for him and me.
• This money is for Fred and me.
College of Business Administration
Pronouns
• Who or Whom?? Re-phrase the sentence so you choose
between he and him. If you want him, write whom; if you
want he, write who.
• Who do you think is responsible? (Do you think he is
responsible?)
• Whom shall we ask to the party? (Shall we ask him to the
party?)
• Give the box to whomever you please. (Give the box to him.)
• Give the box to whoever seems to want it most. (He seems to
want it most.
College of Business Administration
Pronouns
• Confusing whose with who’s
• Who’s looks like a possessive but is really the
contraction for who is
• Who’s that walking down the street?
• Whose coat is this?
• I don’t care whose paper this is. It’s brilliant!
College of Business Administration
Pronouns
• Refer clearly to a specific noun. Don’t be vague or
ambiguous.
• Although the motorcycle hit the tree, it was not damaged.
• Is “it” the motorcycle or the tree?
• I don’t think they should show violence on TV.
• Who are “they”?
• Vacation is coming soon, which is nice.
• What is nice, the vacation or the fact that it is coming soon?
• George worked in a national forest last summer. This may be his life’s
work.
• What word does “this” refer to?
• If you put this sheet in your notebook, you can refer to it.
• What does “it” refer to, the sheet or your notebook?
College of Business Administration
Pronouns
• Lizzy told her mother that her sweater
had a hole in it.
• Who has the hole in her sweater?
• The rule of thumb is that the pronoun refers
to the closest antecedent, in this case, the
word mother.
• Lizzy told her mother, “My sweater has a hole in
it.“
• Lizzy told her mother, “Your sweater has a hole
in it.”
College of Business Administration
Verbs
• Verbs describe an action or act
as a link between a subject and
words that describe the subject
• Examples:
• Working conditions were
substandard.
• I am a student.
College of Business Administration
Verb Tenses
Present: She is a student.
Past: She drove a new car.
Future: He will stock the shelves later today.
College of Business Administration
Voice of Verbs
• Active: He paid too much for the textbook.
• Passive: Several computers have been
taken but so far we don’t know who took
them.
College of Business Administration
Passive Voice
• There is an overabundance of the passive
voice in sentences created by those who use
the passive voice to avoid responsibility for
actions taken.
• Cigarette ads were designed to appeal especially
to children
• We designed the cigarette ads to appeal
especially to children
College of Business Administration
Passive Voice
• The passive is particularly useful (even
recommended) in two situations:
• When it is more important to draw our attention to
the person or thing acted upon
• The unidentified victim was apparently struck during the
early morning hours.
• When the actor in the situation is not important
• The aurora borealis can be observed in the early
morning hours.
College of Business Administration
Prepositions
• A word or group of words that
describes a relationship between
other words in a sentence.
• Examples:
•
•
The shipment will be here by Monday.
Put the book on the shelf.
College of Business Administration
Plague Words & Phrases
Words or phrases that are
unnecessary or overused detract
from your writing!
College of Business Administration
Plague Words/Phrases: Examples
•
•
•
•
•
•
•
And also This is often redundant.
And/or Outside of the legal world, most of the time this construction is used, it is
neither necessary nor logical. Try using one word or the other.
As to whether The single word whether will suffice.
Basically, essentially, totally These words seldom add anything useful to a sentence.
Try the sentence without them and, almost always, you will see the sentence improve.
Being that or being as These words are a non-standard substitute for because. Being
that Because I was the youngest child, I always wore hand-me-downs.
Considered to be Eliminate the to be and, unless it’s important who’s doing the
considering, try to eliminate the entire phrase.
Due to the fact that Using this phrase is a sure sign that your sentence is in trouble.
Did you mean because? Due to is acceptable after a linking verb (The team’s failure
was due to illness among the stars.); otherwise, avoid it.
College of Business Administration
Plague Words/Phrases: Examples
Each and every One or the other, but not both.
Equally as Something can be equally important or as important as, but not
equally as important.
Etc. This abbreviation often suggests a kind of laziness. It might be better to
provide one more example, thereby suggesting that you could have written
more, but chose not to.
He/she is a convention created to avoid gender bias in writing, but it doesn’t
work very well and it becomes downright obtrusive if it appears often. Use he
or she or pluralize (where appropriate) so you can avoid the problem of the
gender-specific pronoun altogether.
Firstly, secondly, thirdly, etc. Number things with first, second, third, etc.
and not with these adverbial forms.
College of Business Administration
Plague Words/Phrases: Examples
Got Many writers regard got as an ugly word, and they have a point. If you
can avoid it in writing, do so. I have got to must begin studying right away. I
have got two pairs of sneakers.
Had ought or hadn’t ought. Eliminate the auxiliary had. You hadn’t ought
not to pester your sister that way.
Interesting One of the least interesting words in English. If you show us why
something is interesting, you’re doing your job.
In terms of See if you can eliminate this phrase.
Irregardless No one word will get you in trouble with the boss faster than
this one.
It is determined Just say what you mean!
College of Business Administration
Plague Words/Phrases: Examples
Kind of or sort of. These are OK in informal situations, but in formal
academic prose, substitute somewhat, rather or slightly. We were kind of
rather pleased with the results.
Literally This word might be confused with literarily, a seldom used adverb
relating to authors or scholars and their various professions. Usually, though,
if you say it’s “literally a jungle out there,” you probably mean figuratively,
but you’re probably better off without either word.
Lots or lots of In academic prose, avoid these colloquialisms when you can
use many or much. Remember, when you do use these words, that lots of
something countable are plural. Remember, too, that a lot of requires three
words: “He spent a lot of money” (not alot of).
Just Use only when you need it, as in just the right amount.
College of Business Administration
Plague Words/Phrases: Examples
Nature See if you can get rid of this word. Movies of a violent nature are
probably just violent movies.
Necessitate It’s hard to imagine a situation that would necessitate the use of
this word.
Of Don’t write would of, should of, could of when you mean would have,
should have, could have.
On account of Use because instead.
Only Look out for placement. Don’t write “He only kicked that ball ten
yards” when you mean “He kicked that ball only ten yards.”
Orientate The new students become oriented, not orientated. The same thing
applies to administrate — we administer a project.
Per Use according to instead. We did it per your instructions? Naah. (This
word is used frequently in legal language and in technical specifications,
where it seems to be necessary and acceptable.)
College of Business Administration
Plague Words/Phrases: Examples
Plus Don’t use this word as a conjunction. Use and instead.
Point in time Forget it! At this time or at this point or now will do the job.
Previous as in “our previous discussion.” Use earlier or nothing at all.
So as to Usually, a simple to will do.
Suppose to, use to. The hard “d” sound in supposed to and used to
disappears in pronunciation, but it shouldn’t disappear in spelling. “We used
to do that” or “We were supposed to do it this way.”
The reason why is because. Deja vu all over again!
Thru This nonstandard spelling of through should not be used in academic
prose.
‘Til Don’t use this word instead of until or till, even in bad poetry.
College of Business Administration
Plague Words/Phrases: Examples
Try and Don’t try and do something. Try to do something.
Thusly Use thus or therefore instead.
Utilize Don’t use this word where use would suffice. (Same goes for
utilization.)
Very, really, quite (and other intensifiers) Like basically, these
words seldom add anything useful. Try the sentence without them and
see if it improves.
IMPROVE YOUR WRITING
BY
AVOIDING THESE WORDS & PHRASES!
College of Business Administration
BUSINESS MEMOS
College of Business Administration
Business Memos
• A common form of internal communications
• Used to:
• Persuade to take action
• Issue a directive
• Provide information
College of Business Administration
Business Memos
• In general, a good memo includes:
• A clear statement of purpose
• Information the reader needs to know
• Statement of action requested, ordered, or
undertaken
College of Business Administration
Business Memos
• Memo format:
•
•
•
•
Facts
Issue
Analysis
Conclusion
• The above list should be the headings used
in a memo
• The same structure is often used in
business letters, but without the headings
College of Business Administration
Business Memos
General Points to Remember
• Write for the intended audience (reader)
• Informative subject line – clear, concise & direct
• Length: Usually no more than one or two pages
• Coherent: Memo structure should be simple
and logical
• Concise: Eliminate needless words, use
attachments for additional information, use
headings
College of Business Administration
Business Memos
General Points to Remember (continued)
• Common language – Use accessible language.
Be specific, not general; concrete, not abstract
• Factual tone – Use a neutral or positive tone,
avoid emotionally charged words. Strive for a
professional, business like voice
• 3rd person! No “next I did this” or “next you…”
College of Business Administration
Business Memos
General Points to Remember (continued)
• Formatting:
•
•
•
•
•
•
11 or 12 point, easy to read font
Margins – one inch all around
“Memorandum” should appear at the top – bolded
and centered
Paragraphs block style (first line not indented) and
single spaced
No opening salutation, no complementary close
No signature
College of Business Administration
Business Memos
Standard memo format:
• Heading – Double spaced
To:
From:
Date:
Subject:
J. Allen, CPA
R. Price, CPA
August 24, 2015
Inventory Pricing for Bayside Industries
➢ Lining up the information provides a more professional
appearance.
➢ “CC:” An optional part of the heading
College of Business Administration
Business Memos
Standard memo format:
• Body (single spaced)
•
•
•
Lays out supporting facts, issue being addresses,
analysis/support for position
It includes information about the memo subject and
provides justification for recommended actions
To make the point use:
•
•
•
•
Headings
Lists
Columns
Bolded text
College of Business Administration
Business Memos
Standard memo format:
• Conclusion (single spaced)
•
•
Presents information about requested actions (dates,
times)
Summarizes the position being taken
College of Business Administration
Research Memos for Accountants
• Typically 4 Sections:
1. Facts – A description of the situation before
addressing the issue
2. Issue – A statement of the issue addressed by the
memo
3. Analysis – A description of the research necessary
to provide an answer or recommendation
4. Conclusion – Answer to question or
recommendation
College of Business Administration
Next Class
• Week 6
• Office Hours / Early Semester Check-in
•
Book an appointment
• Week 7
• Review IP #2, Pick Topic
• ICW #3 – Memo
•
Check Canvas for Pre-read
College of Business Administration
*Note: The Department of Labor revised the regulations located at 29 C.F.R. part 541 with an effective date of
January 1, 2020. WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019,
including the $455 per week standard salary level and $100,000 annual compensation level for Highly
Compensated Employees. The final rule is available at: https://www.federalregister.gov/
documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrativeprofessional-outside-sales-and.
U.S. Department of Labor
Wage and Hour Division
(Revised September 2019)
Fact Sheet #17A: Exemption for Executive, Administrative, Professional,
Computer & Outside Sales Employees Under the Fair Labor Standards Act
(FLSA)
This fact sheet provides general information on the exemption from minimum wage and overtime pay
provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 C.F.R. Part 541.
The FLSA requires that most employees in the United States be paid at least the federal minimum
wage for all hours worked and overtime pay at not less than time and one-half the regular rate of
pay for all hours worked over 40 hours in a workweek.
However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and
overtime pay for employees employed as bona fide executive, administrative, professional and
outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer
employees. To qualify for exemption, employees generally must meet certain tests regarding their
job duties and be paid on a salary basis at not less than $684* per week. Employers may use
nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more
frequent basis, to satisfy up to 10 percent of the standard salary level. Job titles do not determine
exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must
meet all the requirements of the Department’s regulations.
See other fact sheets in this series for more information on the exemptions for executive,
administrative, professional, computer and outside sales employees, and for more information on the
salary basis requirement.
Executive Exemption
To qualify for the executive employee exemption, all of the following tests must be met:
•
•
•
•
The employee must be compensated on a salary basis (as defined in the regulations) at a rate
not less than $684* per week;
The employee’s primary duty must be managing the enterprise, or managing a customarily
recognized department or subdivision of the enterprise;
The employee must customarily and regularly direct the work of at least two or more other
full-time employees or their equivalent; and
The employee must have the authority to hire or fire other employees, or the employee’s
suggestions and recommendations as to the hiring, firing, advancement, promotion or any
other change of status of other employees must be given particular weight.
Administrative Exemptions
To qualify for the administrative employee exemption, all of the following tests must be met:
•
•
•
The employee must be compensated on a salary or fee basis (as defined in the regulations) at
a rate not less than $684* per week;
The employee’s primary duty must be the performance of office or non-manual work directly
related to the management or general business operations of the employer or the employer’s
customers; and
The employee’s primary duty includes the exercise of discretion and independent judgment
with respect to matters of significance.
Professional Exemption
To qualify for the learned professional employee exemption, all of the following tests must be
met:
•
•
•
•
The employee must be compensated on a salary or fee basis (as defined in the regulations) at
a rate not less than $684* per week;
The employee’s primary duty must be the performance of work requiring advanced
knowledge, defined as work which is predominantly intellectual in character and which
includes work requiring the consistent exercise of discretion and judgment;
The advanced knowledge must be in a field of science or learning; and
The advanced knowledge must be customarily acquired by a prolonged course of specialized
intellectual instruction.
To qualify for the creative professional employee exemption, all of the following tests must be
met:
•
•
The employee must be compensated on a salary or fee basis (as defined in the regulations) at
a rate not less than $684* per week;
The employee’s primary duty must be the performance of work requiring invention,
imagination, originality or talent in a recognized field of artistic or creative endeavor.
Computer Employee Exemption
To qualify for the computer employee exemption, the following tests must be met:
•
•
•
The employee must be compensated either on a salary or fee basis (as defined in the
regulations) at a rate not less than $684* per week or, if compensated on an hourly basis, at a
rate not less than $27.63 an hour;
The employee must be employed as a computer systems analyst, computer programmer,
software engineer or other similarly skilled worker in the computer field performing the duties
described below;
The employee’s primary duty must consist of:
1) The application of systems analysis techniques and procedures, including consulting with
users, to determine hardware, software or system functional specifications;
2
2) The design, development, documentation, analysis, creation, testing or modification of
computer systems or programs, including prototypes, based on and related to user or
system design specifications;
3) The design, documentation, testing, creation or modification of computer programs related
to machine operating systems; or
4) A combination of the aforementioned duties, the performance of which requires the same
level of skills.
Outside Sales Exemption
To qualify for the outside sales employee exemption, all of the following tests must be met:
•
•
The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining
orders or contracts for services or for the use of facilities for which a consideration will be paid
by the client or customer; and
The employee must be customarily and regularly engaged away from the employer’s place or
places of business.
Highly Compensated Employees
Highly compensated employees performing office or non-manual work and paid total annual
compensation of $107,432 or more (which must include at least $684* per week paid on a salary or
fee basis) are exempt from the FLSA if they customarily and regularly perform at least one of the
duties of an exempt executive, administrative or professional employee identified in the standard
tests for exemption.
Blue-Collar Workers
The exemptions provided by FLSA Section 13(a)(1) apply only to “white-collar” employees who meet
the salary and duties tests set forth in the Part 541 regulations. The exemptions do not apply to
manual laborers or other “blue-collar” workers who perform work involving repetitive operations with
their hands, physical skill and energy. FLSA-covered, non-management employees in production,
maintenance, construction and similar occupations such as carpenters, electricians, mechanics,
plumbers, iron workers, craftsmen, operating engineers, longshoremen, construction workers and
laborers are entitled to minimum wage and overtime premium pay under the FLSA, and are not
exempt under the Part 541 regulations no matter how highly paid they might be.
Police, Fire Fighters, Paramedics & Other First Responders
The exemptions also do not apply to police officers, detectives, deputy sheriffs, state troopers,
highway patrol officers, investigators, inspectors, correctional officers, parole or probation officers,
park rangers, fire fighters, paramedics, emergency medical technicians, ambulance personnel, rescue
workers, hazardous materials workers and similar employees, regardless of rank or pay level, who
perform work such as preventing, controlling or extinguishing fires of any type; rescuing fire, crime or
accident victims; preventing or detecting crimes; conducting investigations or inspections for
violations of law; performing surveillance; pursuing, restraining and apprehending suspects; detaining
or supervising suspected and convicted criminals, including those on probation or parole; interviewing
witnesses; interrogating and fingerprinting suspects; preparing investigative reports; or other similar
work.
3
Other Laws & Collective Bargaining Agreements
The FLSA provides minimum standards that may be exceeded, but cannot be waived or
reduced. Employers must comply, for example, with any Federal, State or municipal laws,
regulations or ordinances establishing a higher minimum wage or lower maximum workweek than
those established under the FLSA. Similarly, employers may, on their own initiative or under a
collective bargaining agreement, provide a higher wage, shorter workweek, or higher overtime
premium than provided under the FLSA. While collective bargaining agreements cannot waive or
reduce FLSA protections, nothing in the FLSA or the Part 541 regulation relieves employers from their
contractual obligations under such bargaining agreements.
Where to Obtain Additional Information
For additional information, visit our Wage and Hour Division Website:
http://www.wagehour.dol.gov and/or call our toll-free information and helpline,
available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).
When state law differs from the federal FLSA, an employer must comply with the standard most
protective to employees. Links to your state labor department can be found at
www.dol.gov/whd/contacts/state_of.htm.
This publication is for general information and is not to be considered in the same light as official
statements of position contained in the regulations.
1-866-4-USWAGE
TTY: 1-866-487-9243
Contact Us
U.S. Department of Labor
Frances Perkins Building
200 Constitution Avenue, NW
Washington, DC 20210
4