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Let's say that this is a write-through cache, meaning that it forwards all updates to the database as they're made Now, what will happen if at the same time that Joe is online the bank processes a check he's written for $50 Check processing has nothing do with the online application (or so it would seem), so some sort of check-processing software updates the database with Joe's new balance Of course, if Joe uses his online session to transfer money from checking to savings, there can be a serious problem because the cache is unaware of the changes made directly to the database This isn't as unlikely as you might think Valuable data often has many interfaces and problems like this can occur unless these interfaces share a process for interacting with the database The extent of the damage in this example may depend on the write-through nature of the cache Are two SQL UPDATE statements taking place, blindly ignoring the current database values and trusting the cache alone If not, where's the logic that ensures that Joe won't have a negative balance In any case, either Joe will get an error or the bank will give him some money back! Obviously, neither of these is a satisfactory solution The consistency problem gets even worse as we try to make our application more scalable Say an organization provides scalable access to its information by deploying its application across several servers and uses load balancing to distribute the load among Web servers and application hosts (Figure 4-3 shows this deployment) Now, suppose that the application uses a memory cache to retain account information; however, as Figure 4-4 shows, since the application is distributed there are multiple caches Figure 4-3 Load balancing for scalability

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Topic 61: Tax Characteristics of Entities - 195 B Changes in method include going from cash basis to accrual basis or from one inventory valuation method to another (ie, FIFO, LIFO [last-in rst-out])

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Even if the organization has somehow ensured that the cached information will be consistent with the database, how do they ensure consistency among caches If two users share volatile data load-balanced and directed to an available server we can encounter this type of inconsistency between caches Figure 4-4 shows that the first entry for each of the two host-based caches is different To prevent this, some additional consistency mechanism must be built in or added to the system In short, caching solves some problems but creates others Inconsistency is merely one of several risks Another is the security or ethical issue of caching: Should Web proxies be allowed to cache content (is that legal ) Should you cache usernames and passwords in memory Probably not, unless you can guarantee their protection The same may be true of very personal data, such as medical records Back to Web caching, what happens when intermediate caches don't obey your HTTP cache directives Are you liable Still another problem is cache reliability What happens when caches without write-through policies crash To illustrate, let's take a look at the Oracle high-performance database management system (DBMS) Oracle uses multiple processes (or multiple threads, depending on platform and database version) not only to cache query results but also to implement what might be called a "delayed writethrough" policy regarding data updates It avoids writing updates immediately to disk because disk I/O is slow and because permanent updates to data files shouldn't be made until the corresponding transaction is committed However, Oracle still must ensure that system failure doesn't cause transactions to be lost To solve this problem, it logs transactions so that if the server fails all committed transactions are saved, even those in memory awaiting update on disk

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Conceptually, parallelism is the notion of doing more than one task at once Many parallel machines exist and have been used for research and for processing scientific data sets, but it's probably safe to say that the majority of Web applications don't run on parallel infrastructures Nevertheless, many can benefit from parallelism on several levels The key challenge is to understand what aspects of a particular application demand parallelism and what the options are

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1 Taxation at entity level A Only corporations pay income tax at the entity level (1) Corporations report taxable income on Form 1120 (2) Corporations are not subject to the passive activity loss rules (3) Taxable income paid and net income reported on nancial statements are usually not the same (4) Corporations generally have tax rates that are more favorable than individual rates B Dividends received deduction: If a corporation receives dividends from another corporation, it is entitled to a deduction (1) If recipient corporation owns less than 20 percent of the stock of the paying corporation, the deduction is 70 percent of dividends received (2) If recipient corporation owns 20 percent but less than 80 percent of the stock of the paying corporation, the deduction is 80 percent of dividends received (3) If recipient corporation owns 80 percent or more of the stock of the paying corporation, the deduction is 100 percent of dividends received C Net operating losses can be carried back only 2 years or forward 20 years to offset other corporate income They are not passed through to shareholders D Capital gains and losses recognized by corporations are taxed at the same rate as ordinary income and are not subject to the reduced capital gains rate Deductions for capital losses can offset capital gains only, and no amount can be used to offset ordinary income Net capital losses can be carried back three years and forward ve years to offset capital gains E Tax-advantaged employee bene ts for corporations (1) Nontaxable to employee and immediately deductible by corporation (a) Premium for group term insurance less than $50,000 (b) Travel and entertainment (c) Health and accident insurance (d) Meals and lodging for convenience of employee (2) Tax-deferred to employee and immediately deductible by corporation: quali ed pension and pro t sharing plans (3) Immediately taxable to employee and immediately deductible by corporation (a) Group term insurance greater than $50,000 (b) Additional cash salary (c) Group legal services 2 Flow through of income and losses to corporations A Getting cash out of the corporation (1) Shareholders serve as corporate executives, therefore, receiving salary that is taxed only once at the individual level, while providing a tax deduction for the corporation (2) Shareholders serve as creditors (a) By lending money to a corporation; the interest paid to the shareholder becomes a deductible expense for the corporation.

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