To: [Your name] From: Supervising Attorney Re: Mad Dog Review v. Jonesville; First Amendmentfreedom of expression We represent Mad Dog Review, a local rap band. As you know, this is a controversial...
The effective tax rate on gain of $1 million resulting from the sale of qualified small business stock obtained in 2005 in an initial public offering and held more than five years is 14%. Do you...
Mike Moses purchased a mobile home, including installation, from Gary Newman. Newman delivered the home to Mosess lot. Upon inspection of the home, Mosess finance found a broken window and water...
The Crafts home was supplied with gas by the city gas company. Because of some misunderstanding, the gas company believed that the Crafts were delinquent in paying their gas bill. The gas company had...
Company K has a 30 percent marginal tax rate and uses a 7 percent discount rate to compute NPV. The company started a venture that will yield the following before-tax cash flows: year 0, $12,000;...
On December 31, 2014, Alpha Corporation, valued at $10 million, acquired BetaCo when BetaCo was valued at $5 million. BetaCo holds a capital loss carryforward of $220,000 and excess business credits...
Smith was approached by a man who introduced himself as Brown of Brown & Co. Brown was not known to Smith, but Smith asked Dun & Bradstreet for a credit report and obtained a very favorable report on...
The plaintiff, while driving a van manufactured by the defendant, was struck in the rear by another motor vehicle. Upon impact, the plaintiffs head was jarred backward against the rear window of the...
Dan is unhappy with the service he received from Roto-Rooter Corporation, and has established a domain name called www.rotorooterscam.com. The Web site offers critical commentary about Roto-Rooter...
The University of Georgia Athletic Association (UGAA) brought suit against beer wholesaler Bill Laite for marketing Battlin Bulldog Beer. The UGAA claimed that the cans infringed its symbol for its...
(True and False) 1. Identity theft is the largest type of consumer fraud. 2. Identity theft can result in an individuals loss of credit. 3. The best way to prevent a fraudster from establishing a...
With the objectives of preventing crime, maintaining property values, and preserving the quality of urban life, New York City enacted an ordinance to regulate the locations of commercial...
The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In the current year, the trust earns $3,200 in taxable interest and $8,000 in tax exempt interest. In addition, the trust...
The taxpayer is an antiques collector and is going to sell an antique purchased many years ago for a large gain. The facts and circumstances indicate that the taxpayer might be classified as a dealer...
Big Corporation currently owns 25% of Small, Inc. Big acquired this stock two years ago by exchanging $375,000 of its preferred stock with Allie, one of the original owners of Small. Big had tried to...
Compute consolidated taxable income for the calendar year Blue Group, which elected consolidated status immediately upon creation of the two member corporations in January of year 1. All recognized...
Martin owns equipment used in his trade or business purchased four years ago for $200,000. Martin sells the equipment in the current year for $110,000 when its adjusted basis is $52,000. No other...
State A enjoys a prosperous economy, with high real estate values and compensation levels. State B's economy has seen better days-property values are depressed, and unemployment is higher than in...
Mike and Melissa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $120,000), and Melissa contributes the assets of her sole...
Mr. Ms salary was $177,000, and Mrs. Ms salary was $114,000. They had no other income items, no above-the-line or itemized deductions, and no dependents. a. Compute their tax on a joint return. b....
Kevin and Bob have owned and operated SOA as a C corporation for a number of years. When they formed the entity, Kevin and Bob each contributed $100,000 to SOA. They each have a current basis of...
Qwest is the dominant local telephone company in 14 states and the owner of an international fiber-optic network. In 2002, the company was investigated by the SEC for not including certain expense...
(True and False) 1. Fraud auditors should be equally concerned with liabilities being overstated as well as understated. 2. Proactive searching for analytical symptoms means that we are looking for...
Firm Q and Firm R conduct business in a foreign country that imposes a 3 percent VAT. Firm Q produces entertainment videos at a $6 cost per unit and sells the videos to Firm R for $9 per unit. Firm R...
On January 5, Brian drafts a check for $3,000 drawn on Southern Marine Bank and payable to his assistant, Shanta. Brian puts last years date on the check by mistake. On January 7, before Shanta has...
Colleen Matthews had just turned 22 when her hard work finally started to pay off. Six months earlier, Colleen had graduated from a state university with a masters degree in accounting. Colleen...
WHAT IF THE FA CTS WERE DIFERENT? Suppose that searches of the Florida and New York records had revealed that Regions was a secured creditor of Camtech and Avstar Fuel. Would the result have been...
In the current year, Dickinson, Inc., reports an effective tax rate of 36%, and Badger, Inc., reports an effective tax rate of 21%. Both companies are domestic and operate in the same industry. Your...
On February 10, 2015, Gail purchases 20 calls on Red Corporation for $250 per call. Each call represents an option to buy 100 shares of Red stock at $42 per share any time before November 25, 2015....
1. What did the court mean when it stated that strict product liability laws are not fully congruent with classical tort law? 2. Why would the enforcement of the exculpatory clause in this case...
Are there any downsides to live chats with bankruptcy courts? If so, what are they?
1. How do the requirements for negotiation of an instrument with a blank qualified indorsement, as was used in this case, differ from those for negotiation of an instrument with a special qualified...
Barnes, the owner and operator of Blackacre, decided to cease farming operations and liquidate his holdings. Barnes sold fifty head of yearling Merino sheep to Billing and then sold Blackacre to...
Washington purchased an automobile from Smithville Motors. The contract called for payment of the purchase price in installments and contained the defense preservation notice required by the Federal...
What organization has the authority to ban the sale of scooters based on safety concerns? Leota Sage saw a local motorcycle dealers newspaper advertisement for a MetroRider EZ electric scooter for...
(Multiple Choice) 1. Which of the following is true regarding fraud? a. It is easily identified. b. It is seldom observed. c. When a fraud occurs, there is no question whether or not a crime has been...
In 2007, Braden Loeser, a twenty-one-year old college student, was arrested in Springfield, Oregon, for driving under the influence of alcohol (DUI). Loeser was informed of his right to apply for...
In 1998, Big Skye Partnership paid $695,500 for a Christmas tree farm in northern Arizona. In 1991, over 300 farms and ranches in the area were granted allocations of water from a newly completed...
Debate the following proposition: All corporate formation transactions should be taxable events.
In 2014, Maggy (34 years old)is an employee of YBU Corp. YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee...
Gloria sells land that she held as an investment for $2,000 to the Lacy for Senate Campaign Committee. Gloria purchased the land twenty years ago for $2,000. The chairman of the Lacy for Senate...
Grace Lang was employed as a waitress at the Pancake House in Grand Bay, Alabama. While working the morning shift on March 7, 1999, one of Grace's customers left her a Florida lottery ticket as a...
During 2016, Gary earned $57,000 as an executive. Gary, who is single, supported his half sister, who lives in a nursing home. Gary received the following interest: $400 on City of Los Angeles bonds,...
Johnson, president of the First National Bank of A, believes that it is appropriate to employ only female tellers. Hence, First National refuses to employ Ken Baker as a teller but does offer him a...
On December 21, 1988, Pan Am Flight 103 exploded 31,000 feet in the air over Lockerbie, Scotland, killing all 259 passengers and crew on board and 11 people on the ground. Among those killed was...
ABCO (Abbott Development Company) made a note payable to Western State Bank of Midland. The FDIC took over Western States operations after it failed. ABCO had defaulted on the note, after which the...
Cordeio, Inc. is a CFC for the entire tax year. Vancy Company, a U.S. corporation, owns 75% of Cordeio's one class of stock for the entire year. Subpart F income is $450,000, and no distributions...
Assume in Problem 26 that Julio has a capital loss carryover of $50,000 in the current tax year. Julio has no other capital gain transactions during the year. What amount of the capital loss may...
Indicate whether each of the following statements is true or false by writing T or F in the answer column. 1. A tort is a violation of the rights of a particular person. 1. __________ 2. Tort law is...
Sergio owns 200 shares of Palm Corporation common stock, purchased during the prior year: 100 shares on July 5, for $9,000; and 100 shares on October 15, for $12,000. When Sergio sells 50 shares for...
Following a visit to her hometown of Coalinga, Cynthia wrote An Ode to Coalinga (Ode) and posted it in her online journal on MySpace.com. Her last name did not appear online. Her page included her...
Thomas Huskin and his wife entered into a con-tract to have their home remodeled by House Medic Handyman Service. Todd Hall signed the contract as an authorized representative of House Medic. It...
Sam wants to help his brother, Lou, start a new business. Lou is a capable auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be...
St. Charles Drilling Co. contracted with Osterholt to install a well and water system that would produce a specified quantity of water. The water system failed to meet its warranted capacity, and...
Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. The company has five hundred nonunion employees. Representatives of these employees are requesting a...
1. Battery is unpermitted, unprivileged, intentional contact with anothers person. In a physician-patient relationship, how does a physician receive consent to touch the body of a patient? 2. Could...
LaSalle Bank loaned $8 million to Cypress Creek to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired contractors to provide concrete work, plumbing, carpentry, and...
Brewster manufactured plastic bottles. Dial made personal care products at many plants around the country, including one in Salem, Virginia. The companies agreed that Dial would purchase from...
Ball e- mails Sullivan and inquires how much Sullivan is asking for a specific forty- acre tract of land Sullivan owns. Sullivan responds, I will not take less than $ 60,000 for the forty- acre...
Making the Decision Albert and Barbara wish to enter into the business of manufacturing fine furniture. Which form of business organization would you recommend in each of the following situations?...
Now assume that Beaver had stated that she was eighteen years old at the time that she signed the exculpatory clause. How might this affect Beavers ability to disaffirm or ratify the contract? Renee...
Should the common-law maxim Ignorance of the law is no excuse apply to an immigrant who speaks little English and was not educated in the United States? How about for a tourist who does not speak...
How does a response hotline for anonymous tips help to prevent fraud?
Melissa Faraj owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton...
Zeta Corporation is interested in acquiring Tau Corporation through a "Type A" reorganization on January 2 of the current year. Zeta is valued at $50 million and generates taxable income of $5...
You are the tax manager in a CPA office. One of your clients, Snapper Corporation, is also an audit client of the firm. The CFO of Snapper invites you and the audit manager for a one-week deep-sea...
Amy owns a vacation cottage in Maine. She predicts that the time during which the cottage will be used in the current year is as follows: By Amy, solely for vacation and vacationing the rest of the...
Jackson Corporation prepared the following book income statement for its year ended December 31, 2015: Information on equipment depreciation and sale: ¢ Acquired March 3, 2013 for $180,000...
Yvonne and Larry plan to begin a business that will grow plants for sale to retail nurseries. They expect to have substantial losses for the first three years of operations while they develop their...
1. Do you believe TAMU should be held vicariously liable under the doctrine of respondeat superior in this case? Why or why not? 2. Assume that the directors were independent contractors rather than...
Maurice Allred is going to purchase either the stock or the assets of Jewel Corporation. All of the Jewel stock is owned by Charley. Maurice and Charley agree that Jewel is worth $700,000. The tax...
What was the topic of the Federal Reserve notice issued on January 2, 2004
This chapter discusses five reasons for having administrative agencies. Give an example for each reason.
You are the owner of a privately owned, moderate sized company. The business was founded over 20 years ago and has experienced impressive growth and profitability. The only frustrating thing,...
Clifton Corporation acquired all of the outstanding Gillion stock on January 1, 2014, for $2,400,000. The parties immediately elected to file consolidated Federal income tax returns. Gillion reported...
Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this agreement: "Binding Contract: Niels agrees to sell one of his three...
Lynn, age 45, is single and has no dependents. Her income and expenses for the current year are reported as follows. Income Salary .......................................................................
1. Was MaloneCo justified in relying on Ralph and Elies assurances that CenterRock was continuing to pursue the original contract? 2. The court requires a connection or relationship for...
Mr. Vernon is the sole shareholder of Teva. He also owns the office building that serves as corporate headquarters. Last year, Teva paid $180,000 annual rent to Mr. Vernon for use of the building....
Company Y began business in February 2015. By the end of the calendar year, it had billed its clients for $3.5 million of services and had incurred $800,000 of operating expenses. As of December 31,...
Daniel and Katherine Balk asked Jirak Construction, LLC, to remodel their farmhouse in Lawler, Iowa. Jirak provided the Balks with an initial estimate of $45,975 for the cost. Over the course of the...
After TNT Motor Express hired Joseph Bruce Drury as a truck driver, it ordered a background check from Robert Arden & Associates. TNT provided Drurys social security number and date of birth, but not...
Favorite Foods Corp. sold its food to stores and distributors. It established a quantity discount scale that was publicly published and made available to all buyers. The top of the scale gave the...
Between 1988 and 1992, Lorna Nys took out thirteen student loans, totaling about $30,000, to finance an associate of arts degree in drafting from the College of the Redwoods and a bachelor of arts...
The defendants are approximately 80 tenants of a 300 unit luxury apartment building on the upper east side of Manhattan. The monthly rents in the all glass enclosed building, which won several...
Sue is 30 years old and is president and a 51% shareholder of C Corporation. She informs you that C Corporation has 10 shareholders, all unrelated. Other than herself, no shareholder owns more than...
(Multiple choice) 1. Using a subtly different Internet host name to mimic another business is known as: a. Spoofing. b. Sniffing. c. Web-visit hijacking. d. Falsified identity. 2. Passwords and...
Charles Byrd was in a minimum- security jail awaiting trial. A team of sheriffs deputies took several inmates into a room for a strip search without any apparent justification. Byrd was ordered to...
Brendan and Theresa are married and have three children in college. Their twin daughters, Christine and Katlyn, are freshmen and attend the same university. Their son, Kevin, is a graduate student....
Hacienda Farms, Ltd., was organized as a limited partnership with Ricardo de Escamilla as the general partner and James L. Russell and H. W. Andrews as limited partners. The partnership raised...
Shipper was ill for 14 months. His wife did not take care of his affairs carefully, nor did she examine his bank statements as they arrived each month. One of Shippers acquaintances had forged his...
AstroStar, Inc., has a board of directors consisting of three members (Eckhart, Dolan, and Macero) and has approximately five hundred shareholders. At a regular board meeting, the board selects...
BSH Home Appliances Corp. makes appliances under the Bosch, Siemens, Thermador, and Gaggenau brands. To make and market the Pro 27 Stainless Steel Range, a restaurant-quality range for home use, BSH...
During an interview with an IRS official on Dateline, the interviewer asks, "So how do you decide which Forms 1040 get audited and which do not?" How should the IRS official respond, taking into...
CEO was convinced by his employee, M. Ploy, that a coworker, A. Cused, had been stealing money from the company. At lunch that day in the company cafeteria, CEO discharges Cused from her employment,...
Through a "Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31. At the time the 90% was acquired, RetrieverCo was...
Employee says she was forced to quit her job because of her status as a mother of young children. She claimed that her female supervisor created a hostile work environment that violated Title VII....
Harold works for the Zanten Corporation. Ken is self-employed. Zanten pays all of Harolds medical insurance premiums, whereas Ken purchases medical insurance from his insurance agent. Explain how the...
Reggie Bluiett worked at the Silver Slipper Gambling Hall and Saloon. She received her weekly paycheck made out to her from the Silver Slipper. She indorsed the check in blank and left it on her...
Harun Fountain, a minor, was shot in the back of the head at point blank range by a playmate. Fountain required extensive lifesaving medical services from a variety of medical service providers,...