Your company spent $5,000 for building modifications to provide access required by the Americans with Disabilities Act. These expenditures are eligible for a tax credit of 50% of the cost of the...

Your company spent $5,000 for building modifications to provide access required by the Americans with Disabilities Act. These expenditures are eligible for a tax credit of 50% of the cost of the modifications. How does this affect your company’s taxes?

Prepare a cash flow projection for a construction company that currently has two projects under contract for the next year and anticipates picking up a third and fourth project during the year. For the first project, the project’s owner is holding $24,200 in retention from this year’s payments and will continue to hold a 10% retention on all payments during the next year. The construction company is holding $9,400 of retention on its subcontractors from this year’s payments. The retention for this project is expected to be released in June. The estimated bill to the project’s owner and construction costs for the first project are as follows:

The second project started last December and the owner has yet to make a payment. The project’s owner will hold a 10% retention on this project and is expected to release the retention in August. The construction company will withhold retention from the payments to its subcontractors.