Federal offers obtained a warrant to arrest Kateena Norman on charges of credit-card fraud and identity theft. Evidence of the crime included videos, photos, and a fingerprint on a fraudulent check....

Beeson Company made a contract to construct a shopping center for Sartori. Before the work was fully completed, Sartori stopped making the payments to Beeson that the contract required. The contract...

Emma Doyle, age 55, is employed as a corporate attorney. For calendar year 2014, she had AGI of $100,000 and paid the following medical expenses: Medical insurance premiums .................. $3,700...

Mrs. K, a single taxpayer, earns a $42,000 annual salary and pays 15 percent in state and federal income tax. If tax rates increase so that Mrs. Ks annual tax rate is 20 percent, how much additional...

Parker, the owner of certain unimproved real estate in Chicago, employed Adams, a real estate agent, to sell the property for a price of $250,000 or more and agreed to pay Adams a commission of 6...

Kemp leased a gas filling station from Baehr. Kemp, who was heavily indebted to Penn-O-Tex Oil Corp., transferred to it his right to receive payments on all claims. When Baehr complained that the...

City Segway Tours of Washington DC, LLC (CST), operated tours where customers used Segway personal transportation vehicle to tour the city. Norman Mero and his signifi-cant other signed up for such a...

Cyan Corporation (E & P of $700,000) has 4,000 shares of common stock outstanding. The shares are owned as follows: Angelica, 2,000 shares; Dean (Angelica's son), 1,500 shares; and Walter (Angelica's...

Amy files her current year tax return on August 13 of the following year. She pays the amount due without requesting an extension. The tax shown on her return is $24,000. Her current year wage...

KLMN Partnerships financial records show the following: Gross receipts from sales $670,000 Cost of goods sold . (460,000) Operating expenses . (96,800) Business meals and entertainment (6,240)...

Complete the chart for each of the following independent distributions. Assume that all distributions are nonliquidating and pro rata to the partners, that no contributed property was distributed,...

Jonathan, Gary, and Ricardo are active members of a partnership called Swim City. The partnership manufactures, sells, and installs outdoor swimming pools in the states of Arkansas and Texas. The...

A route salesperson for Ideal Milk Company delivered a onehalf- gallon glass jug of milk to Allens home. The next day, when Allen grasped the milk container by its neck to take it out of his...

Peter Gowin was an employee of a granite countertop business owned by Joann Stathis. In November 2015, Gowin signed a promissory note agreeing to pay $ 12,500 in order to become a co- owner of the...

(a) A promoter of theatrical productions applied to a municipal board (charged with managing a city- leased theater) for a license to stage the play Hair. Relying on outside reports that because of...

Under what circumstances should courts not allow fully informed contracting parties to agree to limit remedies?

Thomas worked at a Sherwin-Williams paint store that James managed. Thomas and James had a falling out when, according to Thomas, a relationship began to bloom between Thomas and one of the young...

Did Beaver have the contractual capacity to enter a contract with an exculpatory clause? Why or why not? Renee Beaver started racing go-karts competitively in 1997, when she was fourteen. Many of the...

Kenneth West agreed to sell his car, a 1975 Corvette, to a man representing himself as Robert Wilson. In exchange for a cashiers check, West signed over the Corvettes title to Wilson and gave him the...

Ann took Bonnies watch before Bonnie was aware of the theft. Bonnie discovered her loss immediately and pursued Ann. Ann pointed a loaded pistol at Bonnie, who, in fear of being shot, allowed Ann to...

To better understand the rules for offsetting capital losses and how to treat capital losses carried forward, analyze the following data for an unmarried individual for the period 2012 through 2015....

Eddy Falls is considering litigating a tax deficiency of approximately $229,030 the court system. He asks you to provide him with a short description of his litigation alternatives, indicating the...

1. If the court had accepted Chauvins claim that Millss funds represented an investment, would the result in this case have been different? Explain. 2. Do the facts in this case support the courts...

Edward Hellenbrand ran a comedy club known as the Comedy Cottage in Rosemont, Illinois. The business was incorporated, with Hellenbrand and his wife as the corporations sole shareholders. The...

A limited partnership was formed consisting of Webster as general partner and Stevens and Stewart as the limited partners. The limited partnership was organized in strict compliance with the limited...

The central question in this case is whether the state statute establishing that skiers assume the risks inherent in the sport bars Alainas suit. What would your decision be on this issue? Why?...

Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed...

This year, Justin B.'s share of S corporation income includes $4,000 of interest income, $5,000 of dividend income, and $40,000 of net income from the corporation's professional service business...

Amy Rockwell was a brilliant but penniless electrical engineer. She had designed a new type of cogeneration plant that she believed had great commercial potential. On January 15, she approached...

Linda is the owner of a sole proprietorship. The entity has the following assets. *Potential depreciation recapture is $5,000. **The straight-line method has been used to depreciate the building....

Maria Cantu was a special education teacher under a one-year contract with the San Benito School district for the 1990-1991 school year. On Saturday, August 18, just weeks before fall-term classes...

In year 0, Javens, Inc. sold machinery with a fair market value of $400,000 to Chris. The machinery's original basis was $317,000 and Javens's accumulated depreciation on the machinery was $50,000,...

American Bank loaned Koplik $50,000 to buy equipment for a restaurant about to be opened by Casual Citchen Corp. The loan was not repaid, and Fast Foods, Inc., bought out the interest of Casual...

Abby Novel signed a note with the following on it: Glen Gallwitz 1-8-2002 loaned me $5,000 at 6% interest a total of $10,000.00. The note did not contain a payment schedule or a time for repayment....

Delphinium Company owns two parcels of land ( 1231 assets). One parcel can be sold at a loss of $60,000, and the other parcel can be sold at a gain of $70,000. The company has no nonrecaptured 1231...

Virginia Partners, Ltd. (Virginia Partners), a limited partnership organized under the laws of Florida, conducted business in Kentucky but failed to register as a foreign limited partnership, as...

Debra Agis worked in a Ground Round restaurant. The manager, Roger Dionne, informed the waitresses that there was some stealing going on. Until he found out who was doing it, he intended to fire all...

A Georgia state law requires the use of contoured rear-fender mudguards on trucks and trailers operating within Georgia state lines. The statute further makes it illegal for trucks and trailers to...

L.V.R.V., Inc., sells recreational vehicles (RVs) in Las Vegas, Nevada, as Wheelers Las Vegas RV. In September 1997, Wheelers sold a Santara RV made by Coachmen Recreational Vehicle Co. to Arthur and...

Andrew Parente had a criminal record. He and Mario Pirozzoli Jr. formed a partnership to open and operate the Speak Easy Caf in Berlin, Connecticut, which was a bar that would serve alcohol. The...

M.R. Watters was the majority shareholder of several closely held corporations, including Wildhorn Ranch, Inc. (Wildhorn). All these businesses were run out of Watterss home in Rocky Ford, Colorado....

Victor and Phyllis Garber acquired a piece of real property by warranty deed. The deed was recorded. The property consisted of 80 acres enclosed by a fence that had been in place for more than 50...

Latasha is a self-employed attorney who entertains clients and potential clients in her home. a. What requirements must be met to qualify the outlays as deductible entertainment expenses? b. What is...

California Graphics is a U.S. corporation with $200 million of U.S.-source income and $10 million of foreign-source income. In addition, California Graphics has three-quarters ownership of a Canadian...

On February 7, Pillsbury purchased eight thousand bushels of wheat from Landis. The wheat was being stored at the Greensville Grain Company. Pillsbury also intended to store the wheat with...

During the audit of a major client, you notice that revenues have increased dramatically from the third to the fourth quarter and especially over the previous periods of last year. Youve received...

Claudia Aceves borrowed from U. S. Bank to buy a home. Two years later, she could no longer afford the monthly payments. The bank notified her that it planned to foreclose (take possession of and...

Frances moved in with her mother, Beatrice, when Beatrices health started to fail. Frances cared for her mother as a devoted child would and never expected anything in return. When Beatrice needed to...

The BCD Partnership is being formed by three equal partners, Beta Corporation, Chi Corporation, and Delta Corporation. The partners tax year-ends are June 30 for Beta, September 30 for Chi, and...

Bruce Matthews played football for the Tennessee Titans. As part of his contract, he agreed to submit any dispute to arbitration. He also agreed that Tennessee law would deter-mine all matters...

Tretter alleged that his exposure over the years to asbestos products manufactured by Philip Carey Manufacturing Corporation caused him to contract asbestosis. Tretter brought an action against Rapid...

Two doctors had a dispute over who was doing how much work at their clinic. Their dispute was submitted to arbitration and the arbitrator held in favor of the less experienced doctor. The senior...

Dan and Patricia form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth $150,000, adjusted basis of $30,000)...

Triple H Construction Co. contracted with Hunters Run Stables, Inc., to erect a horse barn and riding arena on Hunters Runs property in Big Flats, New York. Hunters Run got a guarantee in its...

How does the Pygmalion effect relate to fraud prevention?

Kraft is a limited partner of Johnson Enterprises, a limited partnership. As provided in the limited partnership agreement, Kraft decided to leave the partnership and demanded that her capital...

Lone Star Life Insurance Co. agreed to make a long-term loan to Five Forty Three Land, Inc., whenever that corporation requested one. Five Forty Three wanted this loan to pay off its short-term...

Highgate LTC Management was a company that operated a nursing home. Following an investigation into the care of a patient, five employees were convicted of crimes relating to their failure to provide...

Morell bought a security guard business from Conley, including the property on which the business was located. Neither party knew that underground storage tanks were leaking and contaminating the...

Jerome is an elderly man who lives with his nephew, Philip. Jerome is totally dependent on Philips support. Philip tells Jerome that unless Jerome transfers a tract of land he owns to Philip for a...

The gross estate of Raul, decedent, includes stock in Iris Corporation (E & P of $3 million) valued at $2.5 million. At the time of his death, Raul owned 60% of the Iris stock outstanding, and he had...

Juan helps support his mother Maria, his son Jose, and a niece Norma. How many dependency exemptions can Juan claim given these additional facts? Maria lives with Juan. She receives $12,000 of Social...

Would a court be likely to give Chevron deference to the SECs interpretation of the law on insider trading? Why or why not? Assume that the Securities and Exchange Commission (SEC) has a rule that it...

In many states, a bartender (under so-called dram shop laws), friend, party host, or other person who serves liquor to an already-intoxicated person may be held vicariously liable for any damages...

1. According to the chapter, which groups (auditors, managers, coworkers, company accountants, or friends) are in the best position to observe fraud symptoms in each of the three elements of fraud?...

William and Abigail, who live in San Francisco, have been experiencing problems with their marriage. They have a 3-year-old daughter, April, who stays with William's parents during the day because...

In 2016, Ken and Lynn paid $5,000 to purchase Series EE bonds in the name of their 11-year-old son. The son has no other income, and they are in the 28% tax bracket. The taxable interest during the...

In response to the Drug-Free Workplace Act, the Department of Labor (DoL) instituted its Drug-Free Workplace Plan, which designated certain DoL positions as sensitive in regard to public health and...

Explain how Twitter, Facebook, and LinkedIn have resulted in the development of new laws and precedent.

Taback began building a vacation home on a parcel of wooded land. It was to be a three-story house, 31 feet high. This height violated the local zoning ordinance that limited residential homes to two...

To: [Your name] From: Supervising Attorney Re: Commonwealth v. Clavel; execution of search warrantunannounced entry We represent Darren Clavel in the case of Commonwealth v. Clavel. In this case,...

Moore contracted in writing to sell her 2002 Ford Taurus to hammer for $8,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $8,500 on the following Friday. On Tuesday,...

Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $400,000 on May 20, 2016. Lori expects the taxable income derived from her business (without regard to...

Explain whether each of the following transactions results in a valid negotiation: (a) Arnold gives a negotiable check payable to bearer to Betsy without indorsing it. (b) Golden indorses a...

The undersigned promises to pay to the order of John Doe Nine Hundred Dollars with interest from date of note. Payment to be made in five monthly installments of One Hundred Eighty Dollars, plus...

The financial information shown in the following table was presented for Massive Enterprises Ltd. for the year ending May 31, 20X1. Statement of Income Sales $1,700,000 Cost of sales 830,000 Gross...

(Multiple Choice) 1. Which of the following steps is not required in a disparate treatment case? A. The plaintiff must file with the EEOC. B. The plaintiff must submit to arbitration. C. The...

Kenneth Corson, 10, lived with his mother, Lynda Lontz, in an apartment building owned by Bruno and Carolyn Kosinski. While playing with other children who lived in the same building, Corson was...

Martha Jansa executed a will naming her two sons as executors and leaving all her property to them. The will was properly signed and attested to by witnesses. Thereafter, Martha died. When Marthas...

B.I.G. Corporation sold a plot of undeveloped land to SubCo this year for $100,000. B.I.G. had acquired the land several years ago for $40,000. The consolidated return also reflects the operating...

Danny and Marion Klein were injured when part of a fireworks display went astray and exploded near them. They sued Pyrodyne Corp., the pyrotechnic company that was hired to set up and discharge the...

1. Why does this statute raise equal protection issues instead of substantive due process concerns? 2. What are the three levels of scrutiny that the courts use in determining whether a law violates...

A business building on which straight-line depreciation of $13,000 was taken is sold on the installment basis for $100,000 with $20,000 down and four yearly installments of $20,000 plus interest. The...

Assume the same facts as in Problem 49, except that Suz-Anna was formed as an LLC instead of a general partnership. a. How would Suz-Anna's ending liabilities be treated? b. How would Suzy's basis...

Copenhaver contracted to put pay washers and dryers in an apartment complex owned by Berryman. After Copenhaven had installed the equipment, and with four years to run on the contract, Berryman...

Surendra's personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of...

Ralph kisses Edith while she is asleep but does not waken or harm her. Edith sues Ralph for battery. Has a battery been committed?

For decades, the Federal Trade Commission (FTC) resolved fair trade and advertising disputes through individual adjudications. In the 1960s, the FTC began promulgating rules that defined fair and...

Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to make a deposit of 10 percent of the purchase price as a down payment. The terms...

1. Do you agree with the court that "by agreeing to arbitrate a statutory claim, a party does not forgo the substantive rights afforded by the statute; it only submits to their resolution in an...

Assuming a 25 percent tax rate, compute the after-tax cost of the following business expenditures: a. $14,200 cost of a survey capitalized to land. b. $44,750 research and experimental expenditure....

The BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the tax year. The partnership reported a loss for the year, and Brad's share of the loss is $10,000. At the...

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31,...

When Burton Stevens placed a portable hot tub on the deck of his townhouse, he was asked to remove it by the Elk Run Homeowners' Association. Stevens refused and Elk Run filed suit against Stevens to...

Regina has finally landed her dream job at Abercroanie & Fetch. After just a couple of days on the job, we find out why. Often, when people return merchandise, Regina will ring up on the register...

Marsh has a prize horse named Arabian Knight. Marsh is in need of working capital. She borrows $5,000 from Mendez, who takes possession of Arabian Knight as security for the loan. No written...

Marilyn Thomas purchased an installed pool heater from Sunkissed. The pool heater was delivered to Marilyn's residence, but the delivery slip was signed by Nancy Thomas. Marilyn did not know of...

On August 31, 2015, Harvey and Margaret, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized...

Pritchard & Baird was a reinsurance broker. A reinsurance broker arranges contracts between insurance companies so that companies that have sold large policies may sell participations in these...

Cerebral palsy limits Steven Bradleys use of his legs. He uses forearm crutches for short-distance walks and a wheelchair for longer distances. Standing for more than ten or fifteen minutes is...