CIT entered into a sale/leaseback contract with Condere Tire Corporation for 11 tire presses at Condere's tire plant in Natchez, Mississippi. Condere ceased making payments on these presses owned by...

At-Risk Loss Limitation. The KC Partnership is a general partnership that manufactures widgets. The partnership uses a calendar year as its tax year and has two equal partners, Kerry and City...

Heron Company purchases commercial realty on November 13, 1997, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2015, for $850,000. What...

On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows: Kingfisher's business...

The paralegal is assigned the task of preparing an office legal memorandum. The memorandum is due in 10 days, and there is a 5-page limit. The facts and law are as follows: Facts: Mary was Tom's...

When a movement was organized to build Charles City College, Hauser and others signed pledges to contribute to the college. At the time of signing, Hauser inquired what would happen if he should die...

Thomas Rinks and Joseph Shields developed Psycho Chihuahua, a caricature of a Chihuahua dog with a do-not-back-down attitude. They promoted and marketed the character through their company, Wrench,...

David Dental, DDS, and his unmarried partner, Sally Surgeon, MD, have lived together for the past five years. Both are at the peak of their careers and decide to buy a new show case home in La Jolla,...

Santiago and Amy are married and file a joint tax return claiming their three children, ages 12, 14, and 18, as dependents. Their AGI is $140,000. Determine the amount of the couple's child tax...

Avery purchased a refrigerator from a retail store. The written contract stated that the refrigerator was sold as is and that the warranty of merchantability and all warranties of fitness were...

(Multiple choice) 1. Which of the following results in the highest loss per case? a. Expense tampering. b. Payroll schemes. c. Register disbursement schemes. d. Billing schemes. 2. Which of the...

Fern Schimkes husband, Norbert, was obligated on two promissory notes in favor of Union National Bank. Some time prior to his death, Union National Bank prepared a guaranty contract that was given to...

Anna, age 65, who lives with her unmarried son, Mario, received $7,000, which was used for her support during the year. The sources of support were as follows: Social Security benefits ..$1,500 Mario...

Waldo makes out a negotiable promissory note payable to the order of Grace. Grace indorses the note by writing on it Without recourse, Grace and transfers the note for value to Adam. Adam,in need of...

Iris Corporation owns 30% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair market value of $100,000; basis of $160,000) to...

First National Bank certified Smith's check in the amount of $29. After certification, Smith altered the check so that it read $2,900. He presented the check to a merchant in payment for goods. The...

Brian Felley went to the home of Tom and Cheryl Singleton on June 8 to look at a used car that the Singletons had advertised for sale in the local paper. The car was a 1991 Ford with 126,000 miles on...

Corporation VBs tax returns for 2012, 2013, and 2014 provide the following information: a. On the basis of the above data, did VB derive any tax benefit from its 2012 NOL? Explain your conclusions....

While Butler and his wife, Wanda, were browsing through Sloans used car lot, Butler told Sloan that he was looking for a safe but cheap family car. Sloan said, That old Cadillac hearse aint hurt at...

Beach Corporation, an accrual basis taxpayer, reports the following results for the current year: a. What is Beachs taxable income? b. What is Beachs current E&P? Inc ome Gross profit from...

Would Aimer likely be able to avoid reinstating Saldona under the key employee exception? Why or why not? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales...

In the current year Clay reports income and losses from the following activities: Activity X ..$28,000 Activity Y ..(10,000) Activity Z ..(20,000) Salary 100,000 Activities X, Y, and Z are all...

Anne and Michael own and operate a successful mattress business. They have decided to take the business public. They contribute all the assets of the business to newly formed Spring Corporation each...

1. Does the LLP shield protect Snyders personal assets from negligence committed by other partners? 2. Should Snyder have been more active in being aware of his partners deeds? Did he have a duty to...

Scrap metal is a big business in Tennessee, and most of the scrap metal is shipped out of state. Tennessee was concerned that much of the metal being sold to dealers in the state was stolen, so the...

1. What did the contract between Herring and the Bowmans require Herring to do? What is the significance of these provisions? 2. On the issue of liability, in whose favor did the court rule? Why? 3....

Pink Corporation has several employees. Their names and salaries are listed below. Judy ................. $470,000 Holly (Judys daughter) .......... 100,000 Terry (Judys son) ............. 100,000...

Arkin, the owner of Redacre, executed a real estate mortgage to the Shawnee Bank and Trust Company for $10,000. After the mortgage was executed and recorded, Arkin constructed a dwelling on the...

Roy Newburn borrowed money and bought a $49,000 truck from Treadwell Ford. A few months later, the truck developed transmission problems. Newburn learned that the truck had 170,000 more miles on it...

Nellie Lumpkin, who suffered from various illnesses, including dementia, was admitted to the Picayune Convalescent Center, a nursing home. Because of Lumpkins mental condition, her daughter, Beverly...

1. Was Midlands condemnation of property in this case for a public benefit? Explain. 2. Is it fair that a city can exercise its eminent domain power to take property even though the property will not...

Shelly Zumaya (2220 East Hennepin Avenue, Minneapolis, MN 55413) is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Incorporated in 2004, Kiwi Corporation's sole...

The client, Mrs. Tatum, purchased a new microwave oven from Inki Appliances Company. No written or oral warranty was given when the sale was made. The microwave stopped working one week after Mrs....

(a) Judy orally promises her daughter, Liza, that she will give her a tract of land for her home. Liza, as intended by Judy, gives up her homestead and takes possession of the land. Liza lives there...

Owl, Inc., was owned entirely by Jeri Bell and Jerry Gore, each owning 620,000 of the 1,240,000 shares of common stock outstanding. On January 1, 2015, Owl established an employee stock ownership...

Multiple Choice Questions Betty, a salesperson, is an employee with $52,000 AGI who maintains a home office for the convenience of her employer, Smart Systems. The office takes up 5% of Betty's home...

Mary Dale worked in the law office of Emory Stone, an attorney practicing securities law. While proofreading Marys keying of a document relating to the merger of two computer software companies,...

A manufacturing company has the following items related to AMT: Alternative minimum taxable base $98,502,900 Regular tax 11,202,098 Foreign AMT tax credit . 1,400,000 Negative ACE adjustment from a...

Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell...

Lam entered into contracts with Dallas Semiconductor to build six machines, referred to in its contracts as Tools A-F. The contracts were entered into in 2000 and in 2001, but Maxim Integrated...

Basic, Inc., was a publicly traded company engaged in the business of manufacturing chemical refractories for the steel industry. Beginning in September, Combustion Engineering, Inc., and Basic began...

New Orleans Paddlewheels, Inc. (NOP), is a Louisiana corporation formed in 1982 when James Smith, Sr., and Warren Reuther were its only shareholders, with each holding 50 percent of the stock.NOP is...

For the following independent situations, determine the optimum filing status for the years in question. a. Wayne and Celia had been married for 24 years before Wayne died in an accident in 2013....

Sherwood negligently ran into the rear of Austens car, which was stopped at a stoplight. As a result, Austen received bodily injuries and her car was damaged. Sherwood, arts editor for the...

Elmore purchased a car from Doenges Brothers Ford. The car had been placed with the dealership by a dealership employee as part of a consignment arrangement. Elmore was unable to obtain title to the...

Paul Strich did business as an optician in Duluth, Minnesota. Paul used only the products of the Plymouth Optical Co., a national manufacturer of optical products and supplies with numerous retail...

BDD Partnership is a service-oriented partnership that has three equal general partners. One of them, Barry, sells his interest to another partner, Dale, for $90,000 cash and the assumption of Barrys...

Dodona I, LLC, invested $ 4 million in two securities offerings from Goldman, Sachs & Co. The investments were in collat-eralized debt obligations ( CDOs). Their value depended on residential...

James D. Merritt leased a storage locker from Nationwide Warehouse Co., Ltd. (Nationwide), and agreed to pay a monthly fee to lease the locker. Merritt placed various items in the leased premises but...

A1 Roofing Co. entered into a written contract with Jaffe to put a new roof on the latters residence for $1,800, using a specified type of roofing, and to complete the job without unreasonable delay....

A statute requires all vessels traveling on the Great Lakes to provide lifeboats. One of Winston Steamship Companys boats is sent out of port without a lifeboat. Perry, a sailor, falls overboard in a...

Three general unsecured creditors are owed $45,000 as follows: A, $15,000; B, $5,000; and C, $25,000. After all other creditors were paid, the amount left for distribution to general unsecured...

Facebook, Inc., launched a program called Bea-con that automatically updated the profiles of users on Facebooks social networking site when those users had any activity on Beacon partner sites. For...

Dr. Bryan Cook is a licensed dentist who fitted and made a set of dentures for Mrs. Iris Downing, a patient of Dr. Cook who was fitted for dentures. After Mrs. Downing received her dentures from Dr....

Maria Garcia is a CPA whose firm has prepared the tax returns of Stanley Corporation for many years. A review of Stanleys last three tax returns by a new staff accountant, who has been assigned to...

Mohammad Omar Aly Hassan and nine others were indicted in a federal district court on charges of conspiring to advance violent jihad (holy war against enemies of Islam) and other offenses related to...

Joseph and Erica, husband and wife, jointly own all of the stock in Velvet Corporation. The two are currently involved in divorce proceedings, and pursuant to those negotiations, they have agreed...

Multiple Choice Questions 1. Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis of $10,000. This is the first year of Markee's operations. Additional...

After the fall of the Soviet Union, the new government of Azerbaijan began converting certain state- controlled industries to private ownership. Ownership in these companies could be purchased...

Beth retires when she turns 65. She begins receiving a monthly pension of $300 from her employers qualified retirement plan. While employed, Beth contributed $13,000 to the plan. a. Beth uses the...

Mario owns 2,000 shares of Nevada Corporation common stock at the beginning of the year. His basis for the stock is $38,880. During the year, Nevada declares and pays a stock dividend. After the...

In April 2006, a DC-9 aircraft landed in the port city of Ciudad del Carmen, located 500 miles east of Mexico City. When the planes crew began directing security personnel away from the plane, the...

For each of the following situations, answer the questions given with the situation as well as identify the attorneys ethical responsibility to the client. Situation 1: Attorney Pascal Chastain has...

Methamphetamine (meth) is an addictive, synthetic drug made chiefly in small toxic labs (STLs) in homes, tents, barns, or hotel rooms. The manufacturing process is dangerous, often resulting in...

Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the firms note for the loan. In addition, each...

A contract made for the sale of a farm stated that the buyers deposit would be returned if for any reason the farm cannot be sold. The seller later stated that she had changed her mind and would not...

Tony and Susan are starting a retail business selling formal wear for men and women. They estimate profits and losses for the next five years to be: ($20,000), ($10,000), ($5,000), $10,000, and...

Sandra Lerner and Patricia Holmes were friends. One evening, while applying nail polish to Lerner, Holmes layered a raspberry color over black to produce a new color, which Lerner liked. Later, the...

Milt, a self-employed attorney, incurs the following expenses in the current year: Dues paid to the local chamber of commerce .. $1,000 Business lunches for clients and prospective clients (Milt does...

A disc jockey named Z-Trip made a remix of a Beastie Boys song with the hip-hop group's permission. Monster Energy (ME), an energy drink company, wanted to use the remix as part of a video promotion....

This year, Mesa Inc.s before-tax income was $9,877,000. It paid $419,000 income tax to Minnesota and $385,000 income tax to Illinois. a. Compute Mesas federal income tax. b. What is Mesas tax rate on...

John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax-exempt interest income of $1,000. They paid home mortgage...

Medtrans, an ambulance company, was unable to pay its bills. In need of cash, it signed an engagement letter with Deloitte & Touche to perform an audit that could be used to attract investors....

In what ways do bankruptcy laws benefit the economy as a whole? The economic crisis that started in late 2007 led to a significant increase in bankruptcy filings by U.S. consumers and businesses. In...

Nancy and her daughter, Kathleen, have been working together in a cattery called "The Perfect Cat." Nancy formed the business in 1999 as a sole proprietorship, and it has been very successful. Assets...

Alvin Cagle was a potato farmer in Alabama who had had several business dealings with the H.C. Schmieding Produce Co. (Schmieding). Sev-eral months before harvest, Cagle entered into an oral sales...

Frances Hector entered Cedars- Sinai Medical Center (Cedars- Sinai), Los Angeles, California, for a surgical operation on her heart. During the operation, a pacemaker was installed in Hector. The...

Syrovy and Alpine Resources, Inc., entered into a Timber Purchase Agreement. Syrovy agreed to sell and Alpine agreed to buy all of the timber produced during a two-year period. The timber to be sold,...

Construction Helicopters paid Heli-Dyne Systems $315,000 for three helicopters that were in Argentina. Two were ready to fly, and one was disassembled for routine maintenance. The contract said...

Theresa is a college professor who wants to work for a consulting firm during the summer. She will be working on special projects relating to professional development programs. What advantages might...

Roy Rand executed and delivered the following note to Sue Sims: Chicago, Illinois, June 1, 2011; I promise to pay to Sue Sims or bearer, on or before July 1, 2011, the sum of $7,000. This note is...

Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the...

Umair sold some equipment he used in his business on August 29, 2016, that was originally purchased for $70,000 on November 21, 2015. The equipment was depreciated using the 7-year MACRS method for a...

Michael Kittell was employed at Vermont Weatherboard. While operating a saw at the plant, Kittell was seriously injured when a splinter flew into his eye and penetrated his head. Kittell sued Vermont...

Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly...

Peter and Geraldine Tabala (Debtors), husband and wife, purchased a house in Clarkstown, New York. They purchased a Carvel ice cream business for $ 70,000 with a loan obtained from Peoples National...

Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning services...

On May 1, Jennings, a car dealer, e-mails Wheeler and says, "I have a 1955 Thunderbird convertible in mint condition that I will sell you for $13,500 at any time before June 9. [Signed] Peter...

State which court(s) have jurisdiction as to each of these lawsuits: (a) Pat wants to sue his next-door neighbor Dorothy, claiming that Dorothy promised to sell him the house next door. (b) Paula,...

William E. Story agreed to pay his nephew, William E. Story II, a large sum of money (roughly equivalent to $50,000 in 2007 dollars) if he would refrain from drinking liquor, using tobacco, swearing,...

On September 24, 2007, Miguel Carcamo was going through his mail. For some reason, Miguel had not yet received his bank statement, which he usually received at the beginning of each month. Although...

Mountain Stream Trout Co. agreed to buy market size trout from trout grower Lake Farms, LLC. Their five- year contract did not define market size. At the time, in the trade, market size referred to...

Brian Felley went to the home of Thomas and Cheryl Singleton to look at a used car that the Singletons had offered for sale. The car, a six-year-old Ford Taurus, had approximately 126,000 miles on...

Rennie owns a video game arcade. He buys vintage video games from estates, often at much less than the retail value of the property. He usually installs the vintage video games in a special section...

Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the...

On July 11, 1984, Jose Padilla was working as a vacation-relief route salesperson for Frito-Lay. He testified that he made a route stop at Sals Beverage Shop, where he was told by Mrs. Ramos that she...

Suppose that the supply schedule of Brazilian Coffee beans is as follows: Price of Brazilian Coffee beans (per pound) Quantity of Brazilian Coffee beans supplied (pounds) $4.00 6,000 $3.50 5,000...

Green was the owner of a large department store. On Wednesday, January 26, he talked to Smith and said, I will hire you as sales manager in my store for one year at a salary of $48,000; you are to...

Michael Smyth was an operations manager at Pillsbury Co., and his employment status was that of an employee at will. Smyth received certain e-mail messages at home, and he replied to his supervisor...

Restate the following question component of the issue in a persuasive manner. A. "should the evidence be suppressed when . . . ?" In the case, the police failed to obtain a search warrant prior to...