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There's another compelling reason for caching: better access time If the access time of a cache is quicker than that for the same information on the originating source, the cache may be more efficient, even if it's more remote You see this all the time on the Web Suppose there's a great Web site hosted in your city but its server is slow or the network infrastructure connecting it to an Internet backbone is lightweight A content distributor like Akamai or a publicly available cache like Google may have a copy of that information that, although remotely located (perhaps it's even more remote than the original source), is still quicker to access because the servers are snappier and the bandwidth for clients is higher Then there's what I call the cut-to-the-chase aspect of querying that makes a cache quicker to access Suppose I want to find out the vice president of an employee's division I have the employee ID, but to get the VP information I need to query an EMPLOYEE table to find the department ID for that employee, query a DEPARTMENT table to find the division ID for that department, and finally query a DIVISION table to find the division information I want In contrast, a cache can simply map employee IDs to department VP information, as shown in Figure 4-2 The effect is the same: Caches can provide faster access than the original source Figure 4-2 Caching to reduce access time

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194 - Income Tax Planning (7) Sale of depreciable property to a related person (8) Sale when the gain has been deferred under the like-kind exchange rules (9) Sale in which the taxpayer has elected not to use the installment method A taxpayer would want to elect out of installment treatment for the following reasons: (1) Taxpayer has a net operating loss (NOL) carryforward (2) Taxpayer has a long-term capital loss carryforward (3) Taxpayer has a large amount of suspended investment interest expense and can make an election to have the capital gain on the installment sale treated as investment income (4) Taxpayer has tax credits available Reasons for doing an installment sale: (1) It defers tax (a) Higher principal earns more interest (b) Client may be in a lower tax bracket in the future (2) The note should carry higher interest rates than a bank (3) It makes the property easier to sell (4) Seller is willing to bear the risk of repossession in order to earn a higher pro t (5) Reselling the note gives the seller greater liquidity (6) It may be the only way to sell closely held stock (7) It may prevent Social Security bene ts from becoming taxable Get a large down payment to minimize potential foreclosure when selling on the installment basis A taxpayer may elect to report the entire gain in the year of sale even though the payments will be made in installments The seller must recognize a portion of the pro t each year (1) The gross pro t percentage is determined in the year the installment sale is made to determine how much of each payment is pro t Gross pro t percentage = Gross pro t Contract price (2) The contract price includes the total of all principal payments to be made by the buyer over the term of the installment sale J Ordinary income recapture (1) If property is subject to depreciation recapture, recaptured income must be fully reported by taxpayer in year of disposition as ordinary income (2) Recaptured income must be added back to adjusted basis before calculating gross pro t percentage K Exception: Related party rule: If sale occurs to family member who in turn sells the purchased property within two years, the original seller must recognize all gain deferred by installment sale 6 Accounting periods A The annual time period over which a taxpayer calculates tax liability B Taxpayers le on a calendar-year basis C The tax year can be changed only with permission of the IRS 7 Method changes A Once a business entity or individual has adopted an accounting method or accounting period, a change in the method or period requires permission of the IRS even if the original method was incorrect Such corrections cannot be made by ling an amended tax return.

Thus, response time is a function of cache proximity as well as cache efficiency, both relative to the originating source As the equation indicates, that's just the performance benefit Caching can also provide scalability benefits because it reduces demand for server resources in the forms of less bandwidth, fewer CPUs, and fewer connections to manage By copying information to a more local or more efficient source, we delegate the rising resource demands in an effort to provide consistent performance Generally speaking, then, caching improves both performance and scalability Caching is not without its problems The most obvious among them is guaranteeing data consistency: ensuring that the cache contains the same information as the server contains and that multiple caches are kept in sync For example, if your application maintains a main memory cache of session data (such as user information) normally stored in a database, it's important that any changes to the data be reflected in both It's even worse if you have multiple caches and/or multiple databases; then you need to make sure that the data is consistent across all sources Clearly, this can get tricky Suppose you have a banking application that keeps track of checking and savings accounts For improved performance, the application caches account data in memory as accounts are accessed So, while Joe Smith (an account holder) is logged in, his checking balance of $100 and savings balance of $0 are kept in a memory cache

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