1ACCOUNTING 321: INTEGRATED ACCOUNTING TOPICS I

ACCTG 321
Tax Module Syllabus, FALL 2013
Instructor: Dr. Steve Gill

T ax costs can consume a significant portion of business and individual wealth. 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.
Taxation is pervasive, complex and critical to decision-making. This course is the comprehensive study
of mostly Federal United States-based taxes. Although we recommend ACCTG 503, this course likely
represents the terminal point for the study of taxation for many students. 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.

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 require 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.

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

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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.

ACCTG 321 intends to provide students with the opportunity to meet each of the following course level
learning objectives:
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.

Meeting the Objectives:

To help you in meeting these objectives, I have provided a wide array of education elements including:
 A textbook: Taxation of Business Entities 2014 Edition (Smith et al, part of the South Western
Federal Taxation published by Cengage Learning) with ample questions and practice exercises,
problems and cases;
 Homework assignments based on the materials we covered in class and which will be assessed and
returned to you;
 Practice problems and solutions based on the materials we covered in class;
 Sixteen two hour and forty minute class meetings during which we will do a variety of teaching
and learning activities;
 A number of quizzes which will be assessed and returned;
 Two tax research/tax planning cases;
 One midterm exam, two megaquizzes, a final exam, and a cumulative body of knowledge (CBK)
exam;
 Office hours to try and help you with any difficulties you may be having.
 321 Mentors

Our Learning Community:

Just like any other human relationship, successful relationships in the classroom require mutual respect
and communication. I promise to do my part to foster the positive aspects of this learning community, and
I expect the same in return from each student.

My responsibilities:
  I will be prepared for every class.
 I will attempt to answer any questions that you have, if not immediately, then as soon as possible
thereafter.
 I will try and create a classroom environment that feels safe – safe for you to ask questions without
fear of embarrassment and safe for you to be yourself and focus on learning.
 I will do my best to be fair in my assessment of your performance and assignment of grades and to
report these grades as quickly as possible.
 I will attempt to help you understand what you read in the textbook and also add value to the
course by adding insights and information that is not in the text.
 I will try to continuously improve this class.

Your responsibilities:
 I expect that you will come to class. Your presence in class benefits us all.
 I expect you to come to class prepared. That includes preparing each chapter prior to coming to
class for that chapter.
 I expect you will plan your schedule appropriately to allow sufficient time outside of class to be
successful in this course.
 I expect that you will ask questions of me and your colleagues when you do not understand
something you read, something I said, or something one of your colleagues said in class. It is
imperative that any confusion you might have be as temporary as possible. If you are
uncomfortable asking in class, I expect you to contact me in my office.
 I expect you to come prepared to meetings during office hours. Try and write out the question or
for possibly quicker responses, try and e-mail the question first.
 I expect your communications with me to be professional and your questions must avoid issues
that are adequately addressed in class, e-mail or in Blackboard.
 I expect you to obtain access to e-mail and Blackboard and check both frequently.

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).

All assignments are individual assignments unless specifically instructed otherwise (e.g., see Homework
below). If you are unsure as to what is safe to ask of another person, then ask me first; otherwise, assume
it is NOT safe to ask anyone else.

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.” Any student suspected of academic dishonesty will be
reported to the SDSU Center for Student Rights and Responsibilities; if found responsible for academic
dishonesty, the student will receive an F in ACCTG 321.

Plagiarism
According to the SDSU Academic Senate policy on cheating and plagiarism:

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 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 a number 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 321 if you plagiarize. To reduce the
temptation, we will use Turnitin in Blackboard for written submissions.

Course Logistics:
Scheduled class times are:

Sectio Days Times Location

n
1 MW 13:00-15:40 SSE 1401
2 MW 19:00-21:40 NE 60

 Prerequisites: Admission to the Accounting major or minor at SDSU

 Course Material: Taxation of Business Entities 2014 Edition (Smith et al, published by Cengage),
access to CNow online homework manager.
 Bring your best attitude, a calculator and your table pack to class each session.

We will use CNow as the online homework manager. Your CNow links and instructions are provided on
Blackboard under Assignments/Tax/Weekly Schedule.

Assessment:
Your primary assessment will be through exams, case studies, quizzes, and homework. Exams, quizzes,
homework, cases, etc. will be given on the dates listed in the calendar below. Scheduled quizzes will be
given at the beginning of each class period. This module has 1,000 points towards the class total of 2,000
and is allocated as follows:

Assessment % of grade Points

Megaquiz 1 5 50
Midterm Exam 15 150
Megaquiz 2 10 100
Final Exam 25 250
CBK Exam 10 100
Quizzes 7 70
Cases 19 190
 Homework 9 90
Total for module 100% 1,000
Total for course 50% 2,000

Midterm and Final Exams:

All exams and megaquizzes will be cumulative for material presented up to that date. The midterm
and final exams will be taken in your classroom at regularly scheduled times. The CBK exam (see below)
is scheduled for Saturday, Dec 14th from 10:30am to 12:30. You MUST take your exams during the
scheduled exam time. 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.

Common Body of Knowledge Exam (the “CBK”):

You will have a 25 question multiple choice exam on the most important core material covered during the
course (you will also receive a 25 question exam from financial accounting). A score of 70% or better is
required to earn any points on this exam. For example, if you correctly answer 71% of these questions,
you will earn a 71%. If you correctly answer 69% of the questions you will receive a score of zero on the
CBK exam. The first midterm will have a CBK component so you can get accustomed to the type of
questions; however, the midterms will not have a 70% or nothing grading scheme.

MegaQuiz
The megaquizzes are longer quizzes that will feel like an abbreviated exam. They will contain some open
response questions and problems and is cumulative for material covered through that date.

Quizzes:
Quizzes will be given promptly at the beginning of each class period for the material presented for that
class period so you will need to come to YOUR SECTION prepared. You will need a parscore form for
each quiz. The quizzes are intended to be a test of how thoroughly you have prepared (but not mastered)
the material. Since they will be given at the start of class, arriving late will result in a quiz grade of zero
for that quiz. No exceptions. You may not make up a quiz for any reason which is why will drop the
lowest two quiz scores.

Cases:
There will be two tax cases and one PechaKucha presentation (described below). 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) successfully analyzing the present value of
after tax cash flows; (4) some combination of the above or (5) 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. Cases are typically graded by my graduate assistants on a rotating basis.

Pecha Kucha Presentation:

Each student will be part of a group that prepares a pecha kucha presentation on a specific career in
accounting. Pecha Kucha is a form of presentation that requires 20 powerpoint slides that are timed with
no more than 20 seconds on each slide (6 minutes and 40 seconds total). The groups and career will be
assigned during the semester. For more information on pecha kucha go to www.pechakucha.org or search
the myriad of presentations available on YouTube.

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Homework:
Homework assignments are largely prepared using Cengage’s CNow product associated with your
textbook and most are due at 11:30pm on the Sunday after the work has been discussed in class.
Instructions for access to CNow are posted under the weekly schedule in Blackboard. I reserve the right
to also require homework in written or typed format and due at the start of class. You should first attempt
to complete the homework individually. If you are unable to understand a question, I encourage you to
consult with a classmate. The homework solutions become available immediately after the due date. All
homework that is 60% or more correct will receive FULL credit. Homework less than 60% will receive 0
credit. By design the homework is intended to graded leniently. Late homework will not be accepted. I
will drop your lowest homework grade.

Attendance:
I do not take attendance. Each class meeting is 2 hours and 40 minutes and thus missing just one class is
the same as missing a week in a typical class. If you are unable to attend class, do not expect that I will
make up that lecture for you individually in office hours. You may not make up a quiz.

Office Hours:
I hold typical office hours (as detailed at the end of this document).

Course Calendar:

This is a plan for using the available class time we have this semester. It is my best estimate of how the
semester will progress, but from time to time, I may revise it as necessary.

Aug 28
Class 1
Quiz 1
An overview of the course and review of the syllabus
Chapter 1
 What is a tax
 The basic tax formula
 Measuring tax rates using the average, effective and marginal tax rate
 Tax rates structures: proportionate, progressive and regressive
 Implicit taxes
 Characteristics of a good tax: Sufficient (income v. substitution effect and dynamic forecasting), equity (horizontal and
vertical), certainty, convenience, and economy
Chapter 2
 Sources of tax law
o Legislative
o Administrative
o Judicial

Sep 1
HW 1 due by 11:30pm

Sep 4
Class 2
Quiz 2
AICPA SSTS
Circular 230 thru §10.34
Watch RIA Video (to find §6694 and prepare for Tax Research Case)
Chapter 4
 Gross income
  Accounting methods and periods
o Cash method
 Constructive receipt
o Accrual method
 All events test
 Advance payments for goods and services
 Types of income
 Imputed interest
 Muni bonds
 Leasehold improvements
 Life insurance proceeds
 Forgiveness of debt
 Gain and losses generally

Sep 8
HW 2 due by 11:30pm

Sep 11
Class 3
Chapter 5
Take plagiarism tutorial http://infotutor.sdsu.edu/plagiarism/index.cfm
 Ordinary and necessary business deductions
 Accounting methods for deductions
o Cash method
 12 month rule
o Accrual method
 All event test + economic performance
 Disallowed deductions
o Public policy
o Excess compensation
o Cap ex
o Start-up costs
o Related party transactions
o Expenses related to tax-exempt income
 Charitable contributions
 Research and experimentation
 Other
o Interest expense
o Tax expense
o DPAD
 Cost recovery
o Personal property
 Conventions
o Real property
o §179
o Auto limits under §280F
o Amortization

Sep 15
HW 3 due at 11:30pm

Sep 18
Class 4
Megaquiz on Chapters 1, 2, 4, and 5 plus Circ 230 and AICPA SSTS

Sep 25

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Class 5
Quiz 4
Chapter 6
 Bad debts
 Worthless securities
 Casualty and theft losses
 NOLs
 Loss limitations
o Basis
o At-risk
o Passive loss
 Rental activities
 Exception for rental real estate and professionals

Sep 27
Case 1 due at 11:30pm
Submit through Turnitin in Blackboard

Sep 29
HW 4 due at 11:30pm

Oct 2
Class 6
Quiz 5
Chapter 7
 Gain and losses
 Basis
o Cost
o Gift
o Acquired fro
o m decedent
o Conversion to business use
 Non recognition
o Related taxpayers
o Wash sales
o Like kind exchange
o Involuntary conversions
o Other

Oct 5
HW 5 due at 11:30pm

Oct 9
Class 7
Quiz 6
Chapter 8
 Capital assets
 Sale or exchange
 Short sales
 Small business stock
 Corporate taxpayers
 §1231
 §1245
 §1250

Oct 13
HW 6 due at 11:30pm

Oct 16
Midterm exam
Chapters 1, 2, 4, 5, 6, 7, 8, Circ 230 and SSTS

Oct 23
Class 9
Quiz 7
Chapter 9
 Intro to corporate tax
 Comparison to other forms
 Transfer to corporation for control
 Capital structure
 DRD
 Filing requirements

Oct 27
HW 6 due at 11:30pm

Oct 30
Class 10
Quiz 8
Chapter 10
 Earnings and profits
 Corporate distributions of cash and property
 Constructive dividends
 Stock dividends
PechaKucha presentations Part 1

Nov 6
Class 11
Quiz 8
Finish PechaKucha
Chapter 11
 Partnership operations
 Partnership ownership
 Partnership basis
 LLCs
Chapter 12
 Qualifications for S Corp
 S Corp operations
 S Corp basis

Nov 10
HW 9 due at 11:30pm

Nov 13
Megaquiz #2 on all previous materials

Nov 20
Class 13
Quiz 9
Chapter 13
 International
 Multistate

Nov 24
HW 10 due at 11:30pm

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Nov 27
Review for final exam
Case #2 due at 11:30pm

Dec 4
Tax final exam

Dec 14
Combined Tax and Financial CBK
About me:

Instructors Office e-mail Office phone Office Hours

Steve Gill SS3435 sgill@mail.sdsu.edu 594-6273 T 10:00-11:30am
(you should W 4:00-5:00pm
only call my
office in case Others by appointment
of an
emergency
otherwise, e-
mail or come
to office
hours)

Instructor: Steve Gill, Ph.D., CPA (MA inactive), Assistant Professor

Office SS3435 (3rd Floor/Green Patio)
Email: sgill@mail.sdsu.edu
Office mailbox: Located near entrance to School of Accountancy offices on 2nd floor of SS.

Quick Bio of Prof Gill:

Education: University of Florida, B.S. Accounting 1989;
Northeastern University, M.S.T. 1996
University of Massachusetts, Ph.D, February 2008
Work experience: PricewaterhouseCoopers – Audit, Miami, Fl 1990-1992
Ryder Systems, Inc – Internal Audit, Miami, Fl 1993
ThermoElectron, Inc – Internal Audit, Waltham, MA 1993-1994
Eastern Enterprises, Inc – Corporate Accounting, Weston, MA 1994-1996
PricewaterhouseCoopers – Tax Manager, Boston, MA 1996-1998
Digitas, Inc – VP Finance and Tax Director, Boston, MA 1998-2002

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