Sissie owns two items of business equipment. Both were purchased in 2012 for $100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Sissie is considering...

One Monday, a labor organization affiliated with the International Ladies Garment Workers Union began an organizational drive among the employees of Whittal & Son. On the following Monday, six of the...

In 2012, Adrianna contributed land with a basis of $16,000 and a fair market value of $25,000 to the A&I Partnership in exchange for a 25% interest in capital and profits. In 2015, the partnership...

Classify each of the following activities as proper or prohibited under the various consumer statutes you have studied. a. Calling a hospital room to talk to a debtor who is a patient there. b....

James Ferguson operates Jims 11-E Auto Sales in Jonesborough, Tennessee, as a sole proprietorship. In 1999, Consumers Insurance Co. issued a policy to Jim Ferguson, Jims 11E Auto Sales covering Owned...

A state law required builders of homes to be licensed and declared that an unlicensed contractor could not recover compensation under a contract made for the construction of a residence. Although...

Singer was employed by General Automotive Manufacturing Company (GAMC) as its general manager from 1953 until 1959. He had worked in the machine-shop field for more than thirty years and enjoyed a...

You are auditing a bank, and someone provides you with an anonymous tip that an employee is embezzling money from the bank. You decide to investigate the allegation. Your interviews with other bank...

On January 24, 1994, Frederick Hantske Jr. was telephoned at home by Paul Kallina, an employee of Brandenburger & Davis, Inc. Kallina told Hantske that he could possibly be an heir to an estate and...

The Minnesota legislature passed a statute banning the sale of milk in plastic nonrefillable, nonreusable containers. However, it allowed sales of milk in other nonrefillable, nonreusable containers...

Chester Jones was the committee chairman of the Perry County Democratic Party and a candidate for the Perry County School Board. Jones used money given to the Kentucky Democratic Party to hand out...

Anita, a single taxpayer, reports the following items for 2015: Salary (subject to withholding) $20,000 Income for serving on the Board of Directors for XYZ Corporation.. 11,000 Consulting gross...

On March 30, Emery Air Freight Corp. picked up a shipment of furs from Hopper Furs, Inc. Hoppers chief of security filled in certain items in the airbill. In the box entitled ZIP Code, he mistakenly...

Rockland Industries is a Maryland corporation that manufactures drapery lining fabrics. Rockland uses approximately 500,000 pounds per year of antimony oxide, a fire retardant, on its fabrics....

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...

WHAT IF THE FACTS WERE DIFFERENT? Suppose that Salmon had disclosed Gerrys proposal to Meinhard, who had said that he was not interested. Would the result in this case have been different? Explain....

Scott Fane was a CPA licensed to practice in New Jersey and Florida. He built his New Jersey practice by making unsolicited phone calls to executives. When he moved to Florida, the Board of...

Martin Stern Jr. was an architect who worked in Nevada. Nathan Jacobson asked Stern to draw plans for Jacobsons new hotel/ casino, the Kings Castle at Lake Tahoe. Stern agreed to take on the project...

Ms. Z has decided to invest $75,000 in state bonds. She could invest in State A bonds paying 5 percent annual interest or in State R bonds paying 5.4 percent annual inter-est. The bonds have the same...

In 2016, Simon, age 12, has interest income of $800 and dividend income of $4,000. He has no investment expenses. His parents have taxable income of $80,200 and file a joint tax return. Assume that...

Lina purchased a new car for use in her business during 2014.The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum...

Why did the United States Supreme Court grant certiorari in this case, and what did the Court hold with respect to the principal issue?

The Occupational Safety and Health Administration (OSHA) is part of the U.S. Department of Labor. OSHA issued a Directive under which each employer in selected industries was to be inspected unless...

President George H.W. Bush insisted that he had the power to send American troops into combat in the Middle East, without congressional assent. Yet before authorizing force in Operation Desert Storm,...

Intercontinental Metals Corp. (IMC) contracted with the accounting firm of Cherry, Bekaert, & Holland to perform an audit. Cherry issued its opinion about IMC, giving all copies of its report...

Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a balance in AAA of $200,000 and AEP of $110,000 on December 31, 2015. During 2016, Lonergan, Inc., distributes $140,000 to its...

Using the legend provided, indicate which form of business entity each of the following characteristics describes. Some of the characteristics may apply to more than one form of business entity....

A woman was hired as Parks Maintenance Foreperson. She was the first female to occupy this position. Other employees questioned her competence and decisions on a daily basis, were insubordinate,...

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of...

Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and earn salaries as follows: $16,000 (Jim) and $5,200 (Mary Jean). To care for...

Was the confiscation of all cigar manufacturers by the Cuban government in the early 1960s and expropriation or a nationalization? Was this confiscation commercial activity in which a private...

Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $175,000 and a fair market value of $160,000, and it is subject to a...

Carter died in 2015 with a gross estate of $6 million. Before he was married in 2002, Carter had made taxable gifts of $400,000 upon which he paid no gift tax. All of Carter's property passes to his...

Catherine Ray and her husband were flying from Oakland, California, to Dallas, Texas, in 2006 when their American Airlines plane was rerouted to Austin, Texas, because of bad weather in Dallas. Their...

In 1981, in Troy, Ohio, Willis and Mary Jane Ward leased a commercial building to Buckeye Pizza Corp. to operate a pizza parlor. Two years later, Buckeye assigned its interest in the building to...

Assume that Anthony had contacted various users of Yahoos online dating service only to discover that each users profile exaggerated the users physical appearance, intelligence, and occupation. Would...

1. Why did the court conclude that an unoccupied house did not necessarily create a substantial increase in hazard? 2. Why did the court hold that Allstates cancellation of the policy, retroactive to...

Creusot-Loire, a French manufacturing and engineering concern, was the project engineer to construct ammonia plants in Yugoslavia and Syria. The design process engineer for the two plants-as well as...

FBNH Enterprises, Inc. (FBNH), was a distributor of a product known as French Bronze Tablets. The purpose of the tablets was to allow a person to achieve an even tan without exposure to the sun. When...

Your client, Teddy Chow, and his wife Abby filed a lawsuit to recover damages for personal injuries Teddy sustained in an auto accident in 2000. In 2004, a jury awarded Teddy $ 1.62 million in...

1. At one point in the opinion (not included here), the court noted that there is no evidence in the record that the Gebharts ever intended to defraud anyone. Why, then, did the court conclude that...

The Legal Environment Dimension What does the Courts decision in this case mean for people and businesses that face compliance orders? Are they more or less likely to acquiesce to orders they find...

Determine Ronas gross income from the following items she receives during the current year: Interest on savings account ....... $ 300 Dividends on Microsoft stock ........ 200 Interest on Guam...

Bernard Bilski and Rand Warsaw filed a patent application with the U. S. Patent and Trademark Office (PTO). The application sought patent protection for a claimed invention that explains how buyers...

Ed owns Oak Knoll Apartments. During the year, Fred, a tenant, moved to another state. Fred paid Ed $1,000 to cancel the two-year lease he had signed. Ed subsequently rented the unit to Wayne. Wayne...

On May 28, 2016, Mary purchased and placed in service a new $20,000 car. The car was used 60% for business, 20% for production of income, and 20% for personal use in 2016. In 2017, the usage changed...

Village Voice Media, owners of the famous Village Voice newspaper in New York City, sent a letter to The Cape Cod Voice, a year-old publication located in Orleans, Massachusetts, objecting to the use...

Hardie-Tynes Manufacturing Company subcontracted with Hunger United States Special Hydraulic Cylinders Corporation to manufacture two hydraulic cylinders to be used in construction of the Jordanelle...

USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo's assets generating foreign-source income is $5 million. The tax book value of USCo's assets generating...

Silvia exchanges all her Theta Corporation stock (acquired August 1, 2011) for $300,000 of Alpha Corporation voting common stock pursuant to Thetas merger into Alpha. Immediately after the...

Assume the same facts as in Problem 40 with the following modifications. Mitch is killed in a rock slide while mountain climbing in November 2013, and the insurer pays Alicia's estate $400,000. ...

Grand Harbour Condominium Owners Association, Inc., obtained a judgment in an Ohio state court against Gene and Nancy Grogg for $45,458.86. To satisfy the judgment, Grand Harbour filed a notice of...

The X Corporation manufactures machine tools. The five directors of X Corporation are Black, White, Brown, Green, and Crimson. At a duly called meeting of the board of directors of X Corporation in...

A consumer made a purchase on a credit card. The card issuer refused to accept the charge, and an attorney then sued the consumer for the amount due. In the complaint filed in the lawsuit, the...

Winstead filed his * * * com-plaint in the United States District Court for the District of New Jersey, claiming that Jacksons album/ CD and film derived their contents from, and infringed the...

1. Holley and Holley, an interracial couple, alleged that they were the victims of discrimination in housing as a result of actions by Crank, an employee of Triad, Inc. The Holleys sued Meyer, the...

Chris leaves her car parked in front of a store. There are no signs that say Chris cannot park there. The store owner, however, needs the car moved to enable a delivery truck to unload. He releases...

J.C. Penney, a retail merchandiser, has its principal place of business in Plano, Texas. It operates retail stores in all 50 states, including 10 stores in Massachusetts, and a direct mail catalog...

Jerry Baker and his wife, Hammi, believe in the worship of the Sea God, which is a very personal religion to Jerry and Hammi. To practice their beliefs, the Bakers want to take a two-week trip to...

Texscan Corporation (Texscan) was a corporation located in Phoenix, Arizona. The company was audited by Coopers & Lybrand (Coopers), a national CPA firm that prepared audited financial statements for...

At the time of Emile's death, he was a joint tenant with Colette in a parcel of real estate. With regard to the inclusion in Emile's gross estate under 2040, comment on the following independent...

Consider the following balance sheet for DEF Partnership: Suppose Daniel wishes to exit the partnership completely. After discussions with Edward and Frances, the partners agree to let Daniel choose...

If the before tax rate of return on a riskless fully taxable bond is 7% and the before tax rate of return on a riskless tax favored asset is 5%, what is the implicit tax rate on the tax favored...

Pursuant to a complete liquidation, Oriole Corporation distributes to its share holders land held for three years as an investment (adjusted basis of $250,000, fair market value of $490,000). The...

Barney, an individual, and Aldrin, Inc., a domestic C corporation, have decided to form BA LLC. The new LLC will produce a product that Barney recently developed and patented. Barney and Aldrin,...

In April, F. W. Lang Company purchased an ice cream freezer and refrigeration compressor unit from Fleet for $2,160. Although the parties agreed to a written installment contract providing for an...

Farlow graduated from law school in 1988 and was employed by Wachovia Bank of North Carolina to represent it. In 1993, Wachovia discussed the possibility of Farlows working as in-house counsel for...

Squish La Fish holds a patent on a plastic device called "Tuna Squeeze" that squeezes oil and water from cans of tuna. A distributor ordered two million units. Squish hired ProPack to affix each Tuna...

LaCombe practiced optometry as a sole proprietorship, LaCombe Eye Center. Slyfield worked for him at the front desk, but was not involved in bookkeeping. Over a four-year period, Slyfield embezzled...

Kantrell Corporation uses about 50 gallons a day of a highly corrosive acid as a cleaning agent in its production process. It collects the used acid and funnels it through a pipe out into a pond...

Refer to People v. Sanders and United States v. Martinez-Jimenez in Appendix A. For each of these cases, identify the parties, citation, holding, and disposition.

Moe and Joe Rappaport (Tenants) leased space in a shopping mall owned by Bermuda Avenue Shopping Center Associates, L.P. (Landlord), to use as an indoor golf arcade. The lease was signed, and Tenants...

This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be...

WAR (We Are Rich) has been in business since 1981. WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment. Hack & Hack CPAs...

During the years prior to the passage of the Civil Rights Act of 1964, Duke Power openly discriminated against African Americans by allowing them to work only in the labor department of the plants...

Pfizer Inc. paid $2.3 billion to settle civil and criminal charges alleging that it had illegally marketed 13 of its most important drugs. This settlement made history, but not in a good way. It was...

Sparrow Corporation is a calendar year taxpayer. At the beginning of the current year, Sparrow holds accumulated E & P of $33,000. The corporation incurs a deficit in current E & P of $46,000 that...

Tuyen is negotiating the sale of her lakefront property nearWabasha.Nils is offering Cash of $10,000 A parcel of land near Red Wing valued at $5,000 with an adjusted basis of $3,000 A ski boat valued...

Arthur was the father of Bridgette, Clay, and Dana and the owner of Redacre, Blackacre, and Greenacre. Arthur made and executed a warranty deed conveying Redacre to Bridgette. The deed provided that...

This scenario illustrates one of the main reasons why ethical problems occur in business. What is that reason? Isabel Arnett was promoted to chief executive officer (CEO) of Tamik, Inc., a...

Gateway, Inc., sells computers, computer products, computer peripherals, and computer accessories throughout the world. By 1988, Gateway had begun its first national advertising campaign using...

Fifty-four-year-old Bennington worked for Caterpillar, Inc. After a series of management changes and actions that Bennington claims made him feel undermined, he retired and filed an age...

Texaco, Inc., and Shell Oil Co. are competitors in the national and international oil and gasoline markets. They refine crude oil into gasoline and sell it to service station owners and others....

The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca...

Lana, a ten-year-old child, is run over by a car negligently driven by Mitchel. Lana, at the time of the accident, was acting reasonably and without negligence. Clark, a newspaper reporter,...

National-Southwire Aluminum Company (NSA) owns and operates a plant that emits fluoride. When its wet scrubbers were turned off as part of its regular maintenance program, NSA discovered no...

Brazilian & Colombian Co. (B&C), a food broker, ordered 40 barrels of olives from Mawer-Gulden-Annis (MGA). MGAs shipping clerk was later told to make out the bill of lading to B&Cs customer Pantry...

Does the global reach of the Internet support a courts assertion of authority over activities that occur in another jurisdiction? Discuss. William Scott operated World Wide Tele-Sports, an Internet...

Assume the same four independent distributions as in Problem C:10-25. Fill in the blanks in that problem assuming the only change in the facts is that the distributions are now liquidating...

During the year, Chester incurred the following transactions involving capital assets. Gain on the sale of an arrowhead collection (acquired as an investment at different times but all pieces have...

Steven Soderbergh is the Academy Awardwinning director of Erin Brockovich, Traffic, and many other films. CleanFlicks, LLC, filed a suit in a federal district court against Soderbergh, fifteen other...

In 2005, the SEC filed a civil action suit against Samuel Israel III and Daniel E. Marino, managers of a group of hedge funds known as the Bayou Funds. The SEC alleged that Israel and Marino...

Louella was born into a low-income family and lives in a poverty-stricken neighborhood. She recently landed a job as wardrobe consultant at High Fashions Ltd., a retailer of expensive womens clothing...

L. G. and S. L. Patel, husband and wife, owned and operated the City Center Motel in Eureka. On April 16, Rajeshkumar, the son of L. G. and S. L., formed a partnership with his parents and became...

Acme Realty, a real estate development company, is a limited partnership organized in Georgia. It is planning to develop a two hundred- acre parcel of land for a regional shopping center and needs to...

Daniel, a recent college graduate, is on his way home for the Christmas holidays from his new job. He gets caught in a snowstorm and is taken in by an elderly couple, who provide him with food and...

In the Judgment of February 23, 1988, what would the Austrian Supreme Court have done if a private cause of action had been available in Czechoslovakia? How do you think the court would handle...

Gold Corporation, a calendar year C corporation, was formed in 2009 and has been profitable until the current year. In 2015, Gold incurs a net operating loss. Identify the issues that Gold...

Gobble Corporation purchased 400 acres in Green City to build a private golf course and residences. The land cost $10,000,000. Gobble planned high quality, large houses that would sell for an average...

Shoreline Towers Condominium Owners Association in Gulf Shores, Alabama, authorized Resort Development, Inc. (RDI), to manage Shorelines property. On Shorelines behalf, RDI obtained a property...