The article reviews the book "Federal Income Tax Fundamentals," second edition, by William E. Dickerson and Leo D. Stone.

Donald H. Woods, Eugene F. Brigham, Stockholder Distribution Decisions: Share Repurchases or Dividends?, The Journal of Financial and Quantitative Analysis, Vol. 1, No. 1, Proceedings of the First Annual Meeting of the Western Finance Association (Mar., 1966), pp. 15-26

Economists have long been creating models by which to describe optimum behavior for firms to maximize profits. The rigor and inclusiveness of such models have increased steadily in recent years. In the field of commercial banking, however, this has not generally been the case. Concerning the topic of asset management, the typical analyst discusses the decisions to be faced by the bank manager, the reasons for the problems involved, and considerations to include in the solution of such problems. Often, specific rules-of-thumb for the handling of individual asset accounts are advocated.

I. Introduction, 413. — II. A model of cash flows and the costs of cash management for business firms, 416; assumptions underlying the model, 417; optimal values of the policy parameters, 420; some properties of the solution, 423; implications for the demand for money by firms, 425; extension to allow for non-zero drift, 427.— III. The applicability of the model, 429. — Appendix, 433.

The article presents a question paper prepared by the Board of Examiners of the American Institute of Certified Public Accountants which was presented in the 1st half of the Certified Public Accountants (CPA) examination in accounting practice on May 18, 1966. The candidates were required to solve all the problems. All the questions were grouped into five sections. The suggested time allowances for each section was fixed at 40 to 50 and 50 to 60 minutes. Section 1 comprised of 20 multiple choice questions. Section 2 presented a question which required students to prepare a financial statement and to compute income-tax liability. Section 3 required the students to prepare a schedule to compute minimum bid i.e., the bid that would neither increase nor decrease total profits. Section 4 asked of students to prepare a formal consolidated statement of source and application of funds for a company and its subsidiary and a formal schedule of changes in consolidated working capital. Questions in section 5 required students to compute gross profit margin.

The article presents problems and their solutions prepared by the Board of Examiners of the American Institute of Certified Public Accountants, and presented as the first half of the Certified Public Accountants examination in accounting practice held on November 03, 1965. The first question deals with the taxable income of an employee who died, and the liability of his employer towards his widow. The second question deals with the accounting of merger of a proprietorship. Certain questions deal with the issue of calculation of earnings per share. One question deals with the issue of accounting of wages and salaries of employees of a proprietorship. Another question deals with the issue of capital gains tax of a stockbroker, who sold his sole residence. One question deals with the issue of recognition of loss for a stolen diamond ring, given that it was not insured, and that it had different cost and fair market value. Another question deals with the issue of claim amortization of leasehold improvements of a retail store.