ax Research Memo InstructionsACCT 3063Fall 2021You are to prepare a tax research
ax Research Memo InstructionsACCT 3063Fall 2021You are to prepare a tax research memo regarding the following fact pattern. Your memo should include five sections: Facts Issues Authorities Conclusion Analysis. A sample research memo is located in your text on page 2-22. Your memo should be 1-2 pages single spaced. You will need to cite primary authority (including at least 1 court case) in your memo. Your assignment will be screened through TurnItIn so all sources should be cited. You are to work on this assignment with your assigned partner. This assignment is subject to the Academic Honesty Policy. You should submit this assignment through Canvas no later than 11:59 p.m. central time on October 12th.Whitney and Ed North are avid antiques collectors. They regularly attend garage sales and flea markets and purchase lots of old stuff. In 2019 they purchased a very old desk for $600. The desk was in poor shape and required rehabilitation. It sat in their garage for more than a year. Whitney was taking the desk apart when she found an old document jammed into a dark recess of the desk. She opened the document and much to her surprise she had found a Picasso painting. Whitney was very excited by the discovery of this treasure. She and Ed contacted Sothebys the auction house to get an appraisal for the painting. In December 2020 Sothebys authenticated and appraised the painting at $1 350 000. In April of 2021 the painting was auctioned by Sothebys and fetched $1 650 000 net of fees and commissions. Whitney and Ed received the money in May of 2021.Your manager asked you to prepare a research memo indicating how Whitney and Ed should treat the discovery of this document for tax purposes. Specifically you should indicate the following:uf0b7 Do they have taxable income?uf0b7 If so when do they have taxable income and what amount?uf0b7 What is the character of any income? Enter With your partner you should present your findings from the tax research memo. You should assume that I am the client and you are presenting the information to me. The presentation should be approximately 5 minutes long.