The Chief Executive Officer of a client of your public accounting firm saw the following advertisement in a financial newspaper: DONATIONS WANTED The Center for Restoration of Waters A Nonprofit...

Plaintiff, Beth Lyons, a staff attorney for the Legal Aid Society (Legal Aid) brought suit against her employer, alleging that Legal Aid violated the Americans with Disabilities Act (ADA) and the...

What type of bailment relationship was created when Denai agreed to store Finneys boat? What degree of care was Denai required to exercise in storing the boat? Vanessa Denai purchased forty acres of...

1. Should stare decisis be such a powerful doctrine that it trumps modern societal realities (such as baseballs growing use of interstate commerce via radio and television)? 2. As a public policy...

You are the owner of a small firm that manufactures lawn mowers. While using one of your products, a person suffers severe injury and now is suing, claiming that your product was negligently designed...

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a...

Howard Harrison, a longtime customer of Western Bank, operates a small department store, Harrisons Store. Because his store has few experienced employees, Harrison frequently travels throughout the...

If there was any ambiguity on the application, should it be resolved in favor of the insured or the insurer? Provident Insurance, Inc., issued an insurance policy to a company providing an employee,...

Consider the following cases and determine whether the financing statements as filed would be valid under Article 9. Be sure to consider the standard of seriously misleading under Revised Article 9....

Glen, whose tax rate is 33%, sells each of the following assets for $200,000. Each case is an independent case. Sec 1231 Gain Ordinary Taxed at Taxed at Taxed at Taxed at (Loss) Income | 33% 25% 20%...

The following income and expense accounts appeared in the book accounting records of Rocket Corporation, an accrual basis taxpayer, for the current calendar year. The following additional information...

Ali owns 100 shares of Brown Corporation stock. He purchased the stock at five different times and at five different prices per share as indicated. On April 28, 2016, Ali will sell 40 shares of Brown...

Oleander Corporation, a calendar year entity, begins business on March 1, 2016. The corporation incurs startup expenditures of $64,000. If Oleander elects 195 treatment, determine the total amount...

Alpha Rolling Mill Corporation, by letter dated June 8, offered to sell Brooklyn Railroad Company two thousand to five thousand tons of fifty-pound iron rails upon certain specified terms, adding...

On what basis might Cameron maintain a suit against Anderson?

As an internal auditor for CRA, Inc., you are assigned to a team working on an ongoing project to identify possible fraud. The project started with time trend analysis of purchase prices of all items...

The Pardues owned land used for a commercial horse breeding operation. Some neighbors raised turkeys on contract for Perdue Farms. After 10 years, a farm was cited for improper handling of turkey...

Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $480,000. He receives condemnation proceeds of $460,000 and invests the proceeds...

A by- product of phosphate fertilizer production is pyrite waste, which contains arsenic and lead. From 1884 to 1906, seven phosphate fertilizer plants operated on a forty- three- acre operated on a...

McLeod purchased several items from Sears, Roebuck & Co. on credit. The description of the items, in which Sears took a purchase money security interest, was as follows: MITER SAW; LXITVRACDC [a...

The Consumer Product Safety Commission is reconsidering a rule it first proposed in 1997 that would require child-resistant caps on household products, including cosmetics. When the rule was first...

What is the effect on net income of not recording sales returns?

Bonnie is married and has 1 child. She owns Bonnies Rib Joint, which produces a taxable income of approximately $100,000 per year. a. Assume that Bonnies taxable income is $40,000 without considering...

Fritz Hoffman and Fritz Frey contracted the Sun Valley Company (Company) about purchasing a 1.64 acre piece of property known as the Ruud Mountain Property, located in Sun Valley, Idaho, from...

Jennelle and Paula are equal partners in the J&P Manufacturing Partnership. The partnership will form J&P Corporation by exchanging the assets and liabilities of the J&P Manufacturing Partnership for...

On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of...

Compare an implied contract with a quasi contract.

Ronald Bleakney, an officer at Natural Microsystems Corp.(NMC),a Section 12 corporation, directed NMC sales in North America, South America, and Europe. In November 1998, Bleakney sold more than...

Nero needs $500 to buy textbooks and other supplies. Olivia agrees to loan Nero $500, accepting as collateral Neros computer. They put their agreement in writing. How can Olivia let other creditors...

Multiply Choice 1. A sole proprietorship: (a) Must file a tax return (b) Requires no formal steps for its creation (c) Must register with the Secretary of State (d) May sell stock (e) Provides...

Peter is a professor of mathematics at State University. His lifetime avocation has been sailing, and he owns an oceangoing sailing vessel. He plans to retire in five years and spend the remainder of...

In 2001, Donald Malen purchased a Yard-Man riding mower at a Home Depot store. The mower was manufactured by MTD Products in 1998 and was advertised as "Reconditioned Power Equipment" with a "Full...

In 2015, Dick, Evan, and Fran form Triton Corporation. Dick contributes land (a capital asset) having a $50,000 FMV in exchange for 50 shares of Triton stock. He purchased the land in 2013 for...

In May, a homeowner made a contract with a roofer to make repairs to her house by July 1. The roofer never came to repair the roof, and heavy rains in the fall damaged the interior of the house. The...

Why is it important to conduct activities that do not arouse suspicion first and interview the primary subject near the end of your investigation? What could occur if you fail to do this?

For years, courts, employers, and employees have struggled with the issue of employee drug testing. Employers want their employees to be drug free, whereas employees do not want to submit to an...

In 1998, Douglas purchased an office building for $500,000 to be used in a business. Douglas sells the building in the current tax year. Explain why the recognized gain or loss for regular income tax...

Associated Builders, Inc., provided labor and materials to William M. Coggins and Benjamin W. Coggins, doing business as Ben & Bill's Chocolate Emporium, to complete a structure on Main Street in Bar...

On November 23, Acorn, a dress manufacturer, mailed to Bowman a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would remain open for ten days and...

Go to Case 7.3, Sutton v. Eastern New York Youth Soccer Association, Inc. Read the excerpt and answer the following questions. (a) Issue: The focus in this case was the application of the doctrine of...

Between 1996 and 1998, Donna Swanson received several anonymous, handwritten letters that, among other things, accused her husband Alan of infidelity. In 1998, John Grisham, Jr., the author of The...

What 1998 article distinguishes between euthanasia and the withdrawal of life-sustaining treatment?

Ryco Construction Company purchases 15 residential lots in a new subdivision for $1,500,000. On these lots, it builds residences that it sells for a total of $6,200,000. Determine Rycos DPGR.

Describe how a partnership reports its income for tax purposes. Who makes most elections related to partnership income and deductions? What theory underlies this treatment?

Assume Sonics Inc., from the prior exercise, uses LIFO with the periodic inventory system. Thus the LIFO cost of ending inventory at year 1 of 150 units is $ 1,600 (100 @ $ 10 + 50 @ $ 12). Suppose...

Robert Bolus was engaged in various businesses in which he sold and repaired trucks. He decided to build a truck repair facility in Bartonsville, Pennsylvania. Bolus contacted United Penn Bank (Bank)...

Tom and Katie divorced in 2011. Under the divorce decree, Tom is required to pay alimony of $ 3,000 per month and child support for their daughter, Suri, of $ 2,000 per month. In 2013, at age 17,...

Holly inherited $10,000 of City of Atlanta bonds in February. In March, she received interest of $500, and in April she sold the bonds at a $200 gain. Holly redeemed Series EE U.S. savings bonds that...

Re-create Figure 11.6. (a) Shade in the area of the diagram indicating total national income (without offshoring), distinguishing income to multinational firms, non multinational firms, and workers....

Are Costello and Giordano personally liable to Ridgaways estate?

Asher and Stephen formed a corporation named Ampersand to produce plays. Both men were employed by the corporation. Stephen decided to write Phillys Beat, focusing on the history of rock and roll in...

Ochre Corporation's board of directors decides to distribute property to its shareholders rather than pay a cash dividend. Why might Ochre's board make this decision?

Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Foxs in-come tax and Medicare...

Assume that Jill is engaged in painting as a hobby. During the year, she earns $1,000 from sales of her paintings and incurs $1,300 expenses for supplies and lessons. Jills salary from her job is...

In 20X3, Carol Fortier was transferred by her employer to Vancouver from Toronto. She has made a number of financial transactions related to the move. Fortier has asked you for help in determining...

Terrance is age 71 and retired. Beginning in 2016, he must start taking minimum distributions from his IRA account that had a balance of $150,000 as of December 31, 2015. Make these three...

Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later the Archers sued the Warners in a State court for fraud connected with the...

In October 2001, the following case was heard in New Jersey. A former optometrist was sentenced to seven years in state prison for conspiracy, theft by deception, falsifying records, and...

On August 19, 1980, Joan Ioviero injured her hand when she slipped and fell while leaving the dining room at the Hotel Excelsior in Venice, Italy. This hotel was owned by an Italian corporation,...

Use the RIA Checkpoint Citator 2nd to evaluate Revenue Ruling 2001-60. a. What is the rulings complete citation? b. What was the effect of Rev. Rul. 2001-60 on Rev. Proc. 99-49 and Rev. Rul. 55-290?...

BBB Company, which manufactures industrial plastics, owns the following assets. Characterize each asset as either a capital, ordinary, or Section 1231 asset. a. A computer system used in BBBs main...

Richard Vanderbrooks home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Co. His policy excluded coverage for, among other things, [f]lood, surface water, waves, tidal...

Edna, 63, is a widow and works for Rhododendron Corporation. Her annual salary is $40,000. Rhododendron provides the following benefits to all employees: Medical insuranceThe cost of Ednas policy is...

Atlantic Ocean Kamp grounds, Inc. (Atlantic) borrowed $ 60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount....

Albert owns 100 acres of land on which he grows spruce Christmas trees. His adjusted basis for the land is $100,000. He receives condemnation proceeds of $10,000 when the city's new beltway takes 5...

Girard & Company, Certified Public Accountants, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the Securities and Exchange Commission (SEC). The...

If Webster had made the chowder herself from a recipe that she had found on the Internet, could she have successfully brought an action against its author for a breach of the implied warranty of...

Steel Industries, Inc., ordered steel from Interlink Metals & Chemicals. The steel was to be delivered from a Russian mill. There were political and other issues in Russia, and the mill was shut...

A truck driver who refused to drive a truck because he smelled fumes informed his co-worker of this fact. When the employee was disciplined for refusing to take the truck, he alleged that he was...

The federal tax code is riddled with special interest loopholes. Most of these exist because firms and trade associations lobby Congress and provide campaign support to members of Congress to gain...

Suppose that Georgia enacts a law requiring the use of contoured rear-fender mudguards on trucks and trailers operating within its state lines. The statute further makes it illegal for trucks and...

Wesley and Myrtle (ages 90 and 88, respectively) live in an assisted care facility and for 2013 and 2014 received their support from the following sources: Percentage of Support Social Security...

Erica Aponte, age seven, attended Thanksgiving dinner at the home of Michael and Deborah Castor, her aunt and uncle. Following dinner, Erica, accompanied by her cousin, went outside and crawled...

The PDQ Partnership earned ordinary income of $150,000 in 2015. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses the standard deduction, and has other...

Locate the following items, and e-mail to your professor a brief summary of the results. a. Charles Y. Choi, T.C.Memo. 2002-183. b. Ltr.Rul. 200231003. c. Action on Decision, 2000-004, May 10, 2000.

ETHICS: Fifteen-year-old Terri Stubblefield was riding in the backseat of a Ford Mustang II when the car was hit from behind. The Mustang was engulfed in a ball of fire, and Terri was severely...

If Kafluk prevented fifty Asian people who were infected with bird flu from dying, would Arnetts conduct in this situation be ethical under a utilitarian model of ethics? Why or why not? Isabel...

What standard of care applied to the shipment of the dome by Doty Express? Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn near...

D drew a check to the order of P. P took the check postdated. P knew that D was having financial difficulties and that the particular checking account on which this check was drawn had been...

The employer engaged in the practice of photographing an employee engaged in picket line activity. Is this illegal surveillance, even though the activity was open and obvious, no action was taken...

Pedro purchases 50 shares of Piper Company stock on February 19, 2008, at a cost of $4,300. He sells the 50 shares on July 2, 2011, for $9,000. On March 14, 2011, Pedro purchases 100 shares of Troxel...

Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy...

Ames, Bell, Cain, and Dole each orally ordered LCD televisions from Marvel Electronics Company, which accepted the orders. Amess television was to be encased in a specially designed ebony cabinet....

Terminal Grain Corporation brought an action against Glen Freeman, a farmer, to recover damages for breach of an oral contract to deliver grain. According to the company, Freeman orally agreed to two...

You own a local pizza delivery store. Cesar Rodriquez has been working for you as a manager for two years and has been a close friend of yours. Cesar has the reputation of being a hard worker and has...

At the beginning of the tax year, Melodie's basis in the MIP LLC was $60,000, including Melodie's $40,000 share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of...

Ramada Inns, Inc. (Ramada Inns), is a franchisor that licenses franchisees to operate motor hotels using the Ramada Inns trademarks and service marks. In August, the Gadsden Motel Company (Gadsden),...

A client is under the impression that a donor cannot incur a gift tax liability if he or she makes gifts to only U.S. charitable organizations. What should you say to the client?

1. Was the training provided by Chief Slaughter job related and appropriate for the tasks performed by his officers? 2. Captain Hayley should consider some fundamental changes in the training program...

1. Does the bank have to wait until the litigation is complete to enforce the personal guarantees against the physicians? Why or why not? 2. What is the impact of the departing physicians...

Your colleague picks up the 2012 annual report of Microsoft (that we showed in Chapter 6) and finds that Microsoft reports an effective tax rate of 23.8% for fiscal year 2012 and 17.5% for fiscal...

Tomlinson and Hubbard were two of five shareholders in Multimedia Software Distributors, a corporation. The corporation was formed in 1992 and filed for bankruptcy in 1994. In 1996, Tomlinson filed a...

Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. (Assume that neither Rafael nor Crane plans to make any special tax elections at the time of...

Greg Company agreed to pay Ms. Bilko $45,000 compensation for services performed for the company. a. Compare the income tax consequences to Greg and Ms. Bilko if she is an employee or if she is an...

Grant leased an apartment to Epstein for the term May 1, 2010, to April 30, 2011, at $750 a month payable in advance on the first day of each and every month of said term. At the time the lease was...

A negotiable promissory note executed and delivered by B to C passed in due course and was indorsed in blank by C, D, E, and F. G, the present holder, strikes out Ds indorsement. What is the...

Adams, a consulting engineer, entered into a partnership with three others for the practice of their profession. The only written partnership agreement is a brief document specifying that Adams is...

1. Does the national Do Not Call Registry adversely affect the way that business is conducted in this country? If so, how? Should Congress enact a Do Not Spam law? Why or why not? 2. If 90 percent of...

Jetex, an accrual basis, calendar year Corporation, engages in the business of long-distance freight hauling. Every year, Jetex is required to purchase several hundred permits and licenses from state...

MRT, a calendar year corporation, placed the following assets in service this year: a. Compute MRTs MACRS depreciation with respect to the assets placed in service this year. Assume MRT does not...