Do the defendants in this situation (the two Fasig-Tipton firms) meet the requirements of an HDC? Why or why not? The Brown family owns several companies, including the J. H. Stevedoring Company and...

Susan Currie is a U.S. manufacturer of tear gas, which she sells to various governments for crowd control. To reduce transportation costs to the interested governments, Ms. Currie is considering...

To protect minnows that live in state waters, Oklahoma prohibited shipping or selling minnows out of state. Hughes was convicted of transporting minnows from Oklahoma to Texas. He bought the minnows...

After Enron, WorldCom, and other major corporate scandals that rocked America in the recent past, it seemed that nothing would surprise investors or regulators. However, almost everyone was shocked...

Interpret the following citations: a. SENATE FINANCE COMMITTEE, S. REP. No. 2, 97th Cong., 2d Sess. (April 15, 1982). b. LTR 8101067. c. Rev. Proc. 78-172, 1978-2 C.B. 22. d. Lacy v. Comm., 344 F.2d...

Locate the following tax services in your library, and indicate the name of the publisher: a. United States Tax Reporter. b. Standard Federal Tax Reporter. c. Federal Tax Coordinator 2d. d. Mertens...

Find the court decision located at T. C. Memo 2013-144. a. Which court heard the case? b. Who was the judge(s)? c. In what year was the case decided? d. What was the issue(s) involved?

In 2000, June, a 75-year-old widow, creates an irrevocable trust naming her five adult grandchildren as the beneficiaries. The assets transferred in trust consist of marketable securities (worth...

Division West Chinchilla Ranch advertised on television that a five-figure income could be earned by raising chinchillas with an investment of only $3.75 per animal per year and only thirty minutes...

Scarola purchased an automobile for value and without knowledge that it was stolen. After he insured the car with Insurance Company of North America (INA) the car was stolen once again. When INA...

List the steps in a lawsuit. Begin with the filing of the complaint, and explain the points at which there can be a final determination of the parties rights in the case.

Critics of antitrust law claim that in the long run, competitive market forces will eliminate private monopolies unless they are fostered by government regulation. Can you think of any examples of...

Beach Corporation, a seaside restaurant, is owned by 20 unrelated shareholders. This year, Beach made the national news for polluting the surrounding beach and ocean with garbage; it was fined...

Discuss the nature of the challenge the team faces as they seek to build a global company. What are the strengths and weaknesses of their model?

Columbo Corporation, a calendar-year corporation, began business in 2010. With the initial capital contributions from its sole shareholder, it purchased a building on March 12 for $250,000. It also...

As part of its business, Kinkos Graphics Corporation (Kinkos) copied excerpts from books, compiled them in packets, and sold the packets to college students. Kinkos did this without permission from...

Greenberg is a telephone installation and maintenance employee who works for Bell- South. He also is obese and suffers from other medical conditions. Under BellSouths safe load limit policy,...

The stock of Magenta Corporation is owned by Fuchsia Corporation (95%) and Marta (5%). Magenta is liquidated in the current year, pursuant to a plan of liquidation adopted earlier in the year. In the...

1. a. The plaintiff, Gallagher, brought three causes of action in her amended complaint. List them. b. Why do you think the jury ruled in favor of Gallagher? c. Why did Gallagher lose at the trial...

Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). On the basis of the following information, compute the Meyers federal income tax (including any AMT) on their joint...

Which of the following assets are subject to either amortization, depreciation, or cost recovery? Explain. a. An automobile held for personal use. b. Excess amounts paid in a business combination...

Corporation owns 100% of the stock of S1 and S2 Corporations. S1 owns 51% of S3 Corporations stock, and unrelated persons own the remaining 49%. S2 is a foreign corporation. Explain why the...

Jeff, a 10% limited partner in the recently formed JRS Partnership, expects to have losses from the partnership for several more years. He is considering purchasing an interest in a profitable...

Capune was attempting a trip from New York to Florida on an eighteen-foot-long paddleboard. The trip was being covered by various media to gain publicity for Capune and certain products he endorsed....

Schreiner, a cotton farmer, agreed over the telephone to sell 150 bales of cotton to Loeb & Co. Schreiner had sold cotton to Loeb & Co. for the past five years. Written confirmation of the date,...

John C. Clark, using the alias Thomas Pecora, rented a 1994 Lexus from Alamo Rent-A-Car on December 21, 1994. Clark did not return the car and, using falsified signatures, obtained a California...

Diehr devised a computerized process for curing rubber that was based on a well-known mathematical formula related to the cure time, and he devised numerous other steps in his synthetic rubber-curing...

Homeowners Jim and Lisa Criss hired Kevin and Cathie Pappas, doing business as Outside Creations, to undertake a landscaping project. Kevin signed the parties contract as Outside Creations Rep. The...

The plaintiffs entered into an oral agreement with the New York University Medical Center for an in vitro fertilization procedure that would not result in an autistic child. They subsequently signed...

The Public Citizen Health Research Group brought the OSHA to court when the group argued that chromium regulations established by the OSHA were too hard for some companies to maintain. First,...

James Jelinek purchased Hytest BMR Sorghum Sudan grass seed, which was produced and marketed by Land OLakes. Land OLakes warranted the seed to be free from defects and expressly warranted that by...

Clay Corporation has been an S corporation since its incorporation 10 years ago. During the first three years of operations, it incurred total losses of $250,000. Since then, Clay has generated...

Jennifer owns 200 acres of land on which she grows flowers for sale to local nurseries. Her adjusted basis in the land is $ 30,000. She receives condemnation proceeds of $ 20,000 from the state for...

Hall Corporation was formed in 2011 and was exempt from AMT for that year. For 2012 through 2014, its regular tax and tentative minimum tax were as follows: a. Compute Halls tax for 2012, 2013, and...

Leroy owns a truck used in his trade or business that cost $50,000 and has an adjusted basis of $34,000. The truck is exchanged for a new truck that is like-kind property with a FMV of $40,000. Prior...

Judith Studebaker was injured when a van owned and driven by James Ferry collided with her vehicle. On the morning of the incident, Ferry made his usual runs for the florist for whom he delivered...

Carlson's general business credit for the current year is $84,000 His net income tax is $190,000, tentative minimum tax is $175,000, and net regular tax liability is $185,000. He has no other tax...

Saul sold goods to Bruce, warranting that the goods were of a specified quality. The goods were not of the quality warranted, however, and Saul knew this at the time of the sale. Bruce drew and...

On April 1, Moore gave Pipkin a check properly drawn by Moore on Zebra Bank for $5,000 in payment of a painting to be framed and delivered the next day. Pipkin immediately indorsed the check and gave...

The Coca-Cola Company manufactures a carbonated beverage, Coke, made from coca leaves and cola nuts. The Koke Company of America introduced into the beverage market a similar product named Koke. The...

Gooddecade manufactures and sells automobile parts throughout the eastern United States. Among its full-time employees are 220 fourteen-and fifteen-year-olds. These teenagers are employed throughout...

What is the primary source of the law that is at issue here? Suppose the California legislature passes a law that severely restricts carbon dioxide emissions from automobiles in that state. A group...

Christine Bancroft is a twenty-five-year-old blonde with a face and a figure that some of her male colleagues thought seemed better suited to the cover of the Sports Illustrated swimsuit issue than...

From 1934 to 1939, Charles of the Ritz Distributors sold more than $1 million worth of its Rejuvenescence Cream. Advertisements for the cosmetic product typically referred to a vital organic...

Your friend John works for an insurance company. John holds a business degree and has been involved in the insurance business for many years. In a recent conversation, John shares some company...

Designer Surfaces, Inc., supplied countertops to homeowners who shopped at stores such as Lowes and Costco. The homeowners paid the store, which then contracted with Designer to fabricate and install...

The concept of equity is relative. Explain.

Myamo was incorporated on January 1, 2013, and adopted a calendar year for tax purposes. It had the following gross receipts for its first three taxable years: 2013 . $5,118,300 2014 . 3,520,000 2015...

Pigeon, Inc., a 501(c)(3) organization, received support from the following sources. Governmental unit A for services rendered $ 6,300 Governmental unit B for services rendered 4,500 Fees from the...

Different rules for calculating the accumulated earnings credit apply to operating companies, holding and investment companies, and service companies. Explain the differences.

Hun, age 93, has accumulated substantial assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson. Asset Adjusted Basis Fair Market Value...

Pizza of Gaithersburg and The Pizza Shops contracted with Virginia Coffee Service to have vending machines installed in each of their pizza establishments. One year later, the Macke Company purchased...

A builder constructed a house according to plans provided by the owner. The contract specified that only Reading brand pipe was to be used in the plumbing. After the house was completed, the owner...

Construction company C and landlord L negotiate to build an office building for occupancy on September 1. Landlord L wants to sign up commercial renters to occupy the building on September 1....

Emma, a U.S. resident, received the following income items for the current tax year. Identify the source of each income item as either U.S. or foreign. a. $600 interest from a savings account at a...

Parent Corporation, which operates an electric utility, created a 100%-owned corporation, Subsidiary that built and managed an office building. Assume the two corporations have filed separate tax...

Brite Images agrees to sell Poster Planet five thousand posters of celebrities, to be delivered on May 1. On April 1, Brite repudiates the contract. Poster Planet informs Brite that it expects...

Jack Duran, president of Colorado Carpet Installation, Inc., began negotiations with Fred and Zuma Palermo for the sale and installation of carpeting, carpet padding, tile, and vinyl floor covering...

Paula Daniels purchased an automobile from Carey on credit. At the time of the sale, Scott agreed to be a surety for Paula, who is sixteen years old. The automobiles odometer stated fifty-two...

Susan permitted Kevin to take her very old grandfather clock on the basis of Kevins representations that he was skilled at repairing such clocks and restoring them to their original condition and...

Peter and Tanya Rothing operate Diamond R Stables near Belgrade, Montana, where they bred, trained, and sold horses. Arnold Kallestad owns a ranch in Gallatin County, Montana, where he grows hay and...

In 1999, American Golf Corporation (AGC) hired Heye for a job in the pro shop at the Paradise Hills Golf Course, a club that it managed. AGC gave Heye a number of documents, including the Co-Worker...

Randall operates his distribution business in several countries. He wants to move some equipment to a new office in South Africa. This equipment includes assets with a large acquisition price and...

Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable...

Kay owns equipment used in her business and exchanges the equipment for other like-kind equipment and marketable securities. a. Will Kays recognized gain ever exceed the realized gain? b. Will Kays...

Carver Corporation uses the accrual method of accounting and the calendar year as its tax year. Its board of directors authorizes a cash contribution on November 3 of Year 1, that the corporation...

In 2015, Dudley contributed land to the Prosperity LLC. His basis in the land was $100,000. The fair market value at the contribution date was $115,000. In 2016, the LLC distributes other property...

Roberto's salary is $119,600 in 2016. Roberto is paid on a semimonthly basis, is single, and claims one allowance a. What is Roberto's federal tax withholding per pay period? b. What is Roberto's...

Sony Corp. packed a shipment of videocassette tapes into a 40-foot ocean container for transport to England. Sony put the tapes into 1,320 cardboard cartons, then strapped the cartons onto fifty two...

1. Assume that during most of the year, there was a solid strip of land around the property in question that was never under water or saturated. Would the outcome of this case have been the same? Why...

Mr. Lang, on his deathbed, writes his will on a piece of notepaper, signs it, and delivers it to his sister for safekeeping. Does the statute govern the validity of this will?

In 1999, after working for Atchison Leather Prod-ucts, Inc., in Kansas for ten years, Beverly Tull be-gan to complain of hand, wrist, and shoulder pain. Atchison recommended that she contact a...

You own University Heights Apartments, a business that rents primarily to students. One evening, your tenant Sharon is attacked by an intruder who forces the lock on the sliding glass door of her...

The primary objective of the federal income tax law is to raise revenue. What are its secondary objectives?

Gail Lindgren is an entrepreneur who runs a small business called Moonbeams based in West Des Moines, Iowa. In 1997, Ms. Lindgren designed and began selling JeanJangles , jewelry that hangs from the...

Jorge contributed land he held as an investment (fair market value $120,000; basis $55,000) and inventory (fair market value $80,000; basis $75,000) to ABC Corporation in exchange for 50 percent of...

Frederick Manufacturing Corp. ordered 500 dozen units of Import Traders rubber pads for $2,580. The order indicated that the pads should be as soft as possible. Import Traders delivered the rubber...

1. WHAT IF THE FACTS WERE DIFFERENT? Suppose that the name Pyramid Title, LLC, had not been included on the face of the check. Would Peoples have been personally liable for payment of the check in...

Henry invests $50,000 in an entity called Forward Investments on January 20, 2010. Communication Skills Under the terms of the investment agreement, the $50,000 is considered a loan that Forward will...

Bill and Ellen are husband and wife with five married children and eight grandchildren. Commencing in December 2014, they would like to transfer a tract of land (worth $1,008,000) equally to their...

Jada wants to transfer some assets to a trust this year; the income beneficiaries will be her two grandchildren. The trust income and assets will be used to pay the grandchildren's tuition to private...

Alpha issues a negotiable check to Beta payable to the order of Beta in payment of an obligation Alpha owed Beta. Beta delivers the check to Gamma without indorsing it in exchange for one hundred...

On July 1, Anderson sold DAveni, a jeweler, a necklace containing imitation gems, which Anderson fraudulently represented to be diamonds. In payment for the necklace, DAveni executed and delivered to...

Firm B, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable...

Pat, Kelly, and Yvette are equal partners in the PKY Partnership before Kelly sells her partnership interest. On January 1 of the current year, Kellys basis in her partnership interest, including her...

L&M Home Health Corporation (L&M) had a checking account with Wells Fargo Bank. L&M engaged Gentner and Company, Inc. (Gentner) to provide consulting services, and paid Gentner for services rendered...

What is the justification for the doctrine of respondeat superior?

Tambe Electric Inc. entered into a written agreement with Home Depot to provide copper wire to Tambe at a price set forth in the writing, and allowing the contractor the option of paying for the wire...

The text pointed out that it is important to hire employees who are honest and have a well-developed personal code of ethics. Derek Bok, former law professor and president of Harvard University, has...

Wallace owned 50.25 percent of the shares of Capital Credit & Collection Service, Inc. (CCCS), with Jones and Gaarde each owning 24.8 percent. Those three shareholders also constituted the board of...

Tom, an individual taxpayer, has been audited by the IRS and, as a result, has been assessed a substantial deficiency (which has not yet been paid) in additional income taxes. In preparing his...

Wisconsin Cheese Corp. is a large producer of gourmet cheese and has recently expanded overseas. In its first year of international operations ( year 1), Wisconsin Cheese had $ 1 billion of U. S....

Joe is the beneficiary of a life insurance policy taken out by his father several years ago. Joes father dies, and Joe has the option of receiving the $100,000 face value of the policy in cash or...

Riverdale Mills Corp. makes plastic-coated steel wire products in Northbridge, Massachusetts. Riverdale uses a water-based cleaning process that generates acidic and alkaline wastewater. To meet...

Irving was a lawyer who prepared income tax returns for Maroevich. Irving agreed to draft a will for Maroevich, leaving all of the property to Maroevichs sister, Biakanja. When Maroevich died, the...

Michael buys a piece of property from JFK Partnership for $60,000 that has a $70,000 basis. Michael owns 80% of JFK partnership. Identify the tax issue(s) posed by the facts presented. Determine the...

Milena owns a 25% interest in Davis Company, an S corporation. Her basis in the Davis stock is $40,000. Davis reports an operating loss of $200,000 in the current year. Davis owes Milena $25,000 on a...

Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for...

Assume that the only precedents relating to a particular issue are as follows: Tax Courtdecided for the taxpayer Eighth Circuit Court of Appealsdecided for the taxpayer (affirming the Tax Court) U.S....

Rose dies with passive activity property having an adjusted basis of $65,000, suspended losses of $13,000, and a fair market value at the date of her death of $90,000. Of the $13,000 suspended loss...