Utopia Home Health, Inc.: A Case Study on C Corporation Taxation from Cradle to Grave
2010; American Accounting Association; Volume: 25; Issue: 4 Linguagem: Inglês
10.2308/iace.2010.25.4.755
ISSN1558-7983
Autores Tópico(s)ICT Impact and Policies
ResumoCASE MATERIALS AND ASSIGNMENT ackground and Facts renda Breaux and Tracy Boudreaux each own a home health agency in the State of Utopia, which was admitted as the 51st state of the United States of America in 1997. Brenda has owned and managed various types of businesses in the health care industry for over 30 ears, including nursing homes, durable medical equipment companies, and laboratories. Brenda egan her home health care agency roughly 20 years ago, and her firm is the predominant home ealth agency in the southern part of Utopia. Tracy earned an M.B.A., with an emphasis in health care, from Utopia International Univerity and has 15 years of experience in hospital management. She began her home health care gency only five years ago and in that short time has captured 35 percent of the home health care arket in the northern part of Utopia. Tracy has also developed a software program tailored to eet the accounting, billing, and reporting requirements of home health care agencies. Because of he unique and complex billing requirements of Medicaid, Medicare, and private insurers, the oftware is expected to be a substantial revenue producer once it is marketed to its full potential. Confident of the success of her software program, Tracy borrowed $400,000 from Shark ational Bank to cover the cost of developing the program. Tracy began marketing the software nly 18 months ago and it has been very well received by the industry. Tracy is concerned that ithout additional capital for the software venture that she will not be able to provide the training nd technical support that the licensees of the software will demand. Therefore, she has limited the umber of licenses that she has issued for the software to 75 customers until she is able to expand er support capabilities. Tracy realizes the software will soon lose its competitive advantage in the arket unless she is able to move quickly to market the product to its full potential. Brenda and Tracy, both avid volleyball fans, met at a weekend beach volleyball tournament everal years ago and became fast friends. They have discussed their vision of a national home
Referência(s)