The Nursing Home Pension Fund filed suit against Oracle Corporation alleging that Larry Ellison, the companys CEO, misled investors in 2001 about the true financial condition of the company. During...

Shonda owns 1,000 of the 1,500 shares outstanding in Rook Corporation (E & P of $1 million). Shonda paid $50 per share for the stock seven years ago. The remaining stock in Rook is owned by unrelated...

In each of the following independent situations, determine the tentative minimum tax (assume that the companies are not in small corporation status): AMTI (before the Exemption Amount) Brant...

The courts generally do not weigh the sufficiency of consideration according to the comparative economic value of what is exchanged. Should they? Why or why not?

How much time does Janet have after filing the bankruptcy petition to submit the required schedules? What happens if Janet does not meet the deadline? Three months ago, Janet Harts husband of twenty...

Majestic Group Korea, Ltd., borrowed $ 1.5 million from Overseas Private Investment Corp. (OPIC) to finance a Ruby Tuesdays restaurant. Nam Koo Kim, the sole owner of Majestic, and his spouse, Hee...

Julian, Cornelia, and Sheila petitioned for a corporate charter for the purpose of conducting a retail shoe business. They met all of the statutory provisions, with the exception of having their...

The Twist Trust has generated $60,000 in depreciation deductions for the year. Its accounting income is $75,000. In computing this amount, pursuant to the trust document, depreciation was allocated...

Omega Corporation reports the following results for the current year: Net income per books (before federal income taxes)$738,000 Federal income tax expense per books..(231,540) Net income per books...

Anne is a reporter for Daily Business Journal, a print publication consulted by investors and other businesspersons. She often uses the Internet to conduct research for the articles that she writes...

(Multiple Choice) 1. Most financial statement frauds occur in smaller organizations with simple management structures, rather than in large, historically profitable organizations. This is because: a....

Davis, an officer for a 501(c)(3) organization, receives benefits that are inappropriate in the context of a charitable entity. The excess benefits are determined to be $35,000. Davis does not pay...

Wasatch Corp. (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: a. WC's taxable...

How are the six steps in the data-driven approach to fraud detection different from the traditional reactive approach?

Alexia Jones is a worker at a local 24-hour pharmacy. Alexia works the night shift and is the only worker. Because management is cost-conscious and business is slow at night, Alexia has been given...

On December 1, Euphonia, a famous singer, contracted with Boito to sing at Boitos theater on December 31 for a fee of $25,000 to be paid immediately after the performance. (a) Euphonia, for value...

Hoffman wanted to acquire a franchise for a Red Owl grocery store. (Red Owl was a corporation that maintained a system of chain stores.) An agent of Red Owl informed Hoffman and his wife that if they...

Robert Triffin bought a number of dishonored checks from McCalls Liquor Corp., Community Check Cashing II, LLC (CCC), and other licensed check cashing businesses in New Jersey. Seventeen of the...

Taylor, age 18, is claimed as a dependent by her parents. For 2014, she has the following income: $4,000 of wages from a summer job, $1,800 of interest from a money market account, and $2,000 of...

Townsend, the sole shareholder of Pruett Corporation, has a $480,000 basis in his stock. He exchanges his Pruett stock for $600,000 of Rogers voting common stock plus land with a fair market value of...

In New York City, 2406-12 Amsterdam Associates LLC brought an action in a New York state court against Alianza Dominicana and Alianza LLC to recover unpaid rent. The plaintiff asserted cause to...

Jessie Romero offered to deliver two trade- in vehiclesa 2003 Mitsubishi Montero SP and a 2002 Chevrolet Silverado pickupto Scoggin-Dickey Chevrolet Buick, Inc., in exchange for a 2006 Silverado...

Purple Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Scarlet Corporation for $1,200 in 2015. Scarlet incurs TV advertising expenses of $300 and sells the...

To: [Your name] From: Supervising Attorney Re: United States v. Canter; armed bank robbery with a dangerous weapon We have been appointed to represent Eldon Canter in the case of United States v....

On June 15, a newspaper columnist predicted that the coast of State X would be flooded on the following September 1. Relying on this pronouncement, Gullible quit his job and sold his property at a...

Suppose that Shoepke wants to file a trespass lawsuit against some teenagers who continually throw Frisbees over his land. Shoepke discovers, however, that when the city put in the Frisbee golf...

Under the federal Sex Offender Registration and Notification Act (SORNA), sex offenders must register as sex offenders and update their registration when they travel from one state to another. David...

During her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin made in 1768. She returned the violin to the owner...

Continue with the results of Problem 33. Prepare the GAAP journal entries for Phillipss year 1 income tax expense. In problem Phillips, Inc., a cash basis C corporation, completes $100,000 in sales...

When the FBI learns that Mary, its FBI agent, is a lesbian, Mary is fired. Mary goes to an attorney to find out about the possibility of suing to get her job back. What does the attorney likely tell...

Vern Westby inherited a ticket from Anna Sjoblom, a survivor of the sinking of the Titanic, which had been pinned to the inside of her coat. He also inherited an album of postcards, some of which...

Bill and Mary plan to marry in December 2015. Bills salary is $32,000 and he owns his residence. His itemized deductions total $12,000. Marys salary is $39,000. Her itemized deductions total only...

Compare the liens of carriers, warehouses, and hotels in terms of being specific.

Buyer B pays $10,000 to New Orleans grain dealer D in exchange for Ds promise to deliver grain to buyer Bs London office on October 1. As a result of signing this contract, B decides not to sign a...

Pedro owns a 60% interest in the PD General Partnership having a $40,000 basis and $200,000 FMV. His share of partnership liabilities is $100,000. Because he is nearing retirement age, he has decided...

What does empirical research say about access and treatment discrimination against Blacks?

Arnold Kazery was the owner of a hotel leased to George Wilkinson. The lease included renewal options of ten years each. When Arnold transferred his interest in the property to his son, Sam, no one...

Kim leased an office building to USA Corporation under a ten-year lease specifying that at the end of the lease USA had to return the building to its original condition if any modifications were...

Advance Technology Consultants, Inc. (ATC), contracted with RoadTrac, L.L.C., to provide software and client software systems for the products of global positioning satellite (GPS) technology being...

At what point is a crop of broccoli identified to the contract under the Uniform Commercial Code (UCC)? Explain. Why is identification significant? In December, Mendoza agreed to buy the broccoli...

Assuming that Beaver did, in fact, sign the exculpatory clause, did she later disaffirm or ratify the contract? Explain. Renee Beaver started racing go-karts competitively in 1997, when she was...

Residents of the city of Madison, Wisconsin, became concerned about overconsumption of liquor near the campus of the University of Wisconsin (UW). The city initiated a new policy, imposing conditions...

The Lexington partnership has a depreciable business asset (personal property) that it originally purchased for $60,000. The asset now has an adjusted basis of $36,000 and a market value of $70,000....

If the objectives of the federal tax system are multi faceted and include raising revenues, providing investment incentives, encouraging certain industries, and meeting desired social objectives, is...

Mr. and Mrs. Woodson instituted a product liability action in an Oklahoma state court to recover for personal injuries sustained in Oklahoma in an accident involving a car that they had bought in New...

The IRS audited the Loser Corporations return filed two years ago. The IRS found substantial underreporting of income and is proposing to review Losers returns for the six prior years. Loser knows it...

The XYZ Company had twelve employees for the first half of 2011. It signed a contract with a major retailer in June 2011 and hired an additional eight employees to handle the extra work. The contract...

You have been hired by a small firm to analyze its accounts receivable department and assess how susceptible it is to fraud. The company operates a table manufacturing facility. The only employee in...

Jeffrey Glockzin was an employee of Nordyne, Inc. (Nordyne), which manufactured air conditioning units. Sometimes Glockzin worked as an assembly line tester. The job consisted of using bare metal...

Christopher, Melony, Xie, and Ruth form iNet.com, LLC, a limited liability company. The four members are all Ph. D. scientists who have been working together in a backyard garage to develop a...

In 1994, Mr. and Mrs. Adams formed ADC by transferring $50,000 cash in exchange for 100 shares of common stock and a note from the corporation for $49,000. The note obligated ADC to pay 10 percent...

Harrison Epperly operated United Brake Systems in Indianapolis, Indiana, and wanted to open a similar store in Nashville. He offered Kenneth Jarrett a job as manager, promising six months severance...

Donald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly...

Ingram is a Certified Public Accountant (CPA) employed by Jordan, Keller and Lane, CPAs, to audit Martin Enterprises, Inc., a fast-growing service firm that went public two years ago. The financial...

What factors would a court consider to determine whether the $1 million liquidated damages provision constitutes valid damages or is a penalty?

Q-1 Motor Express was an interstate trucking company. When a union attempted to organize Q-1s drivers, it met heavy resistance. A supervisor told one driver that if he knew what was good for him, he...

Martha invites John to come to lunch. Though she knows that her private road is dangerous to travel, having been heavily eroded by recent rains, Martha doesnt warn John of the condition, reasonably...

Assume that you have taken some very valuable photographs. You want to inform the developer so that he will be liable for extraordinary damages in the event that he harms the film. Instead, the...

During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was...

During 2015, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: Income: Salary ...$150,000 Dividends from Alta Corporation ... 800 Interest income from a savings...

The plaintiff, Herbert Rosenthal Jewelry Corporation, and the defendant, Kalpakian, manufactured jewelry. The plaintiff obtained a copyright registration of a jeweled pin in the shape of a bee....

Jane bought a string of pearls from Grantham Jewelers. Jane wrote a check for $1,760 to pay for the pearls. When Jane had the pearls appraised for insurance purposes, she learned from the appraiser...

Did Manny have the authority to hire additional laborers to work at the ranch after his injury? Why or why not? Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy...

Lew owns a store on Canal Street in New Orleans. He paid a person named Mike and other individuals commissions for customers brought into the store. Lew testified that he had known Mike for less than...

Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $100 a month...

Debbie Brooks and Martha Tingstrom lived together. Tingstrom handled their finances. For five years, Brooks did not look at any statements concerning her accounts. When she finally reviewed the...

Inez has a specific set of plans to build a sailboat. The plans are detailed, and any boatbuilder can construct the boat. Inez secures bids, and the low bid is made by the Whale of a Boat Corp. Inez...

Clark Oil agreed to sell Amerada Hess several hundred thousand barrels of oil at $24 each by January 31, with the sulfur content not to exceed 1 percent. On January 26, Clark tendered oil from...

Jason Novell, doing business as Novell Associates, hired Barbara Meade to work for him. The parties orally agreed on the terms of employment, including payment of a share of the companys income to...

Assuming that all the primary authority applies to the issues raised by the facts of the client's case, list the authority in the hierarchical order of its value as precedent; that is, authority with...

Barbara K. Thompson purchased a Sunbean brand food hand mixer. The mixer was made by Simatelex, a company located in Hong Kong, China, marketed in the United States by Sunbeam Products, Inc., and...

The KL Partnership is owned equally by Kayla and Lisa. Kaylas basis is $20,000 at the beginning of the tax year. Lisas basis is $16,000 at the beginning of the year. Assume partnership debt did not...

Christie is the preparer of the Form 1120 for Yostern Corporation. On the return, Yostern claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be...

Advance Technology Consultants, Inc. (ATC), contracted with RoadTrac, LLC, to provide software and client software systems for the products of global positioning satellite (GPS) technology being...

Jose Pena and Joseph Antenucci were medical doctors who were partners in a medical practice. Both doctors treated Elaine Zuckerman during her pregnancy. Her son, Daniel Zuckerman, was born with...

Latesha, a single taxpayer, had the following income and deductions for the tax year 2015: a. Compute Lateshas taxable income and federal tax liability for 2015 (round to dollars). b. Compute...

Suppose that the judge denied Playskools motion and the case proceeded to trial. After hearing all the evidence, the jury found in favor of the defendant. What options do the plaintiffs have at this...

Use the RIA Citator to evaluate 59 A. F. T. R. 2d 87-392. a. What is the name of the case and what are its parallel citations? b. In which circuit court was this case heard? c. What are the two main...

Scotwood Industries, Inc., sells calcium chloride flake for use in ice melt products. Between July and September 2004, Scotwood delivered thirty-seven shipments of flake to Frank Miller & Sons, Inc....

The statute is Georgia Code Ann. 11-2-314. The title of the statute is "Implied warranty: merchantability; usage of trade." The question is whether there is an implied warranty of merchantability....

Mr. Bill is the sole proprietor of a small play-dough production company. Over the last few months, he noticed revenues dropping and started wondering what is going on. After giving it much thought,...

Mason performs services for Isabella. In determining whether Mason is an employee or an independent contractor, comment on the relevance of each of the factors listed below. a. Mason performs...

What is a complete liquidation? A partial liquidation? Explain the difference in the tax treatment accorded these two different events.

1. The transition from officer to supervisor is difficult and sometimes isolating. Discuss some issues that complicate the transition. 2. What should you do as a new sergeant to prove to your...

Alda and Mattingly are residents of phase I of the Chimney Hills subdivision. The lots owned by Alda and Mattingly are subject to the following restrictive covenant: Lots shall be for single-family...

Charlotte Chambers and other South Dakota residents chartered a bus in South Dakota from Dakotah Charter, a South Dakota corporation, to attend a Tae Kwon Do tournament in Arkansas. While en route...

Wes and Tina are a married couple and provide financial assistance to several persons during the current year. For the situations below, determinewhether the individuals qualify as Wes and Tinas...

Grano owns a forty-room motel on Highway 100. Tanner is interested in purchasing the motel. During the course of negotiations, Grano tells Tanner that the motel netted $30,000 during the previous...

Continental Insurance Co. issued a policy to cover shipments by Oakley Fertilizer, Inc. Oakley agreed to ship three thousand tons of fertilizer by barge to Ameropa North America in Caruthersville,...

Beth acquired only one tract of land seven years ago as an investment. In order to sell the land at a higher price, she decides to subdivide it into 20 lots. She pays for improvements such as...

Ross, Marcos, and Albert are partners. Ross and Marcos each contributed $60,000 to the partnership; Albert contributed $30,000. At the end of the fiscal year, distributable profits total $150,000....

On March 2, Bankers Life & Casualty Co. proposed in a letter addressed to Gaston Trepanier that he accept a lump-sum settlement of $20,000 in exchange for Bankers Life's release from a disability...

Maria Ochoa receives two new credit cards on May 1. She had solicited one of them from Midtown Department Store, and the other arrived unsolicited from High-Flying Airlines. During the month of May,...

(Multiple choice) 1. Overstating cash is usually difficult because: a. Cash balances can be easily confirmed with banks and other financial institutions. b. Cash is hard to steal. c. Cash is normally...

David Brown met with Stan Steele, a loan officer with the Bank of Idaho (now First Interstate Bank), to discuss borrowing money from the bank to start a new business. After learning that he did not...

On January 2, 2015, Martin Corporation acquires two properties from a shareholder in a transaction that qualifies under § 351. The shareholders basis, the fair market value, and the built-in...

Almega Corporation, organized under the laws of State S, has outstanding twenty thousand shares of $100 par value nonvoting preferred stock calling for noncumulative dividends of $5 per year; ten...

Justice Jacksons tripartite analysis of presidential power, announced in Youngs-town, has been referred to by members of the Court on many occasions since that decision was rendered. Describe that...

1. What is a material breach of contract? When a material breach occurs, what are the nonbreaching partys options? 2. What is a minor breach of contract? When a minor breach occurs, is the...

Salmon, Inc., a private foundation, has existed for 8 years. During this period, Salmon has been unable to satisfy the requirements for classification as a private operating foundation. At the end of...