A controller of a small fruit-packing company in California stole $212,000 from the company. When asked why, he said, Nobody at the company (especially the owners) ever talked to me. They treated me...

Fisher, an employment agency, sued Catani, a minor, for breach of contract for the balance due the agency of $101.25 as a commission for finding Catani employment. The defendant disaffirmed his...

Around June 2005, PPI purchased three pallets of computer wafers from Omneon Video Graphics. PPI requested that Omneon ship the wafers directly to the City University of New York, the end purchaser...

Jana leaves her trucks motor running while she enters a Kwik-Pik Store. The trucks transmission engages and the vehicle crashes into a gas pump, starting a fire that spreads to a warehouse on the...

Simon owns stock that has declined in value since acquired. He has decided either to give the stock to his nephew, Fred, or to sell it and give Fred the proceeds. If Fred receives the stock, he will...

What are the forces that Justice Cardozo says shape the judicial process? How is the law made? In light of the liberal versus conservative divisions in the courts, are Cardozos observations still...

In each of the following independent cases in which the partnership owns no hot assets, indicate the following. All of the partners received proportionate distributions. Whether the partner...

Indicate whether each of the following would make good consolidated return partners in computing the affiliated group's Federal income tax. a. SubCo has a number of appreciated assets that it wants...

True/False Questions 1. There are five elements in a negligence case, and a plaintiff wins who proves at least three of them. 2. Max, a 19-year-old sophomore, gets drunk at a fraternity party and...

In which of the following situations is specific performance available as a remedy? (a) Mary and Anne enter into a written agreement under which Mary agrees to sell and Anne agrees to buy for $100...

In April, Cranson was asked to invest in a new business corporation that was about to be created. He agreed to purchase stock and to become an officer and director. After his attorney advised him...

A statute gives the Department of the Interior the power to allow or to curtail mining within the national forests as the best interests of all users of the national forest shall dictate. Is this a...

One possible pitfall of the renewal-fee system for determination of optimal patent life is that, ideally, we want the patent-holder to compare the renewal fee with the social benefit of continuing...

Despite the Montreal Protocol, the nation of Livy continues to produce CFC-emitting refrigerators and to export them to nations throughout the world. A number of governments object to Livys practices...

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...

Johnny C. Carpenter and Harvey E. Hill died of asphyxiation when a fire broke out in their Hattiesburg, Mississippi, apartment on the morning of February 20, 1983. There were no smoke detectors in...

Susie Walker executed a will that left her entire estate to her grandson. When her grandson died, Susie executed a new will that named her great- grandson as her sole beneficiary and specifically...

The Bassos contracted with Dierberg to purchase her property for $1,310,000. One term of the contract stated, "the sale under this contract shall be closed . . . at the office of Community Title...

Megan operates a house-cleaning business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets the business, and provides supplies and equipment. The business has been...

Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 1996: The FMV of the warehouse and the land are $500,000 and $200,000, respectively. Ed owns 75% of...

In 2014, your client, Clear Corporation, changed from the cash to the accrual method of accounting for its radio station. The company had a positive 481 adjustment of $2.4 million as a result of the...

Yolanda Christophe filed a bankruptcy petition under Chapter 13. Her scheduled debts consist of $11,100 of secured debt, $9,300 owed on an unsecured student loan, and $6,960 of other unsecured debt....

C&J Publishing Co. told a computer salesman that it wanted a computer system that would operate its printing presses. C&J specified that it wanted only new equipment and no used equipment would be...

Marcia Saxton worked for Jerry Richardson, a supervisor at AT&Ts International Division. Richardson made advances to Saxton on two occasions over a three-week period. Each time Saxton told him she...

Explain the relationship between a tying arrangement and cross-licensing.

Hank just loves his new job as a sales clerk at the local classy department store, Fashions My Style. Its a great way for him to earn a few dollars while attending high school. Not only does his job...

The defendant agreed to sell watches to the buyer in Mexico. A notation was printed at the bottom of the contract, which, translated into English, reads as follows: Please send the merchandise in...

1. Given that the shareholder was suing the directors and not a third party (an outsider to the corporation), was it fair to him to require that he first demand that the directors undertake the suit?...

Kridel entered into a lease with Sommer, owner of the Pierre Apartments, to lease apartment 6-L for two years. Kridel, who was to be married in June, planned to move into the apartment in May. His...

In each of the following independent situations, determine the corporations income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is...

Sidney entered into a contract for $35,000 with MacDonald Roofing Co., Inc., to reroof his building. Sidney made his initial payment by writing a check for $17,500 payable to MacDonald Roofing...

Which of the following income items, when received by a corporation, are included in personal holding company income (PHCI)? Indicate whether any special circumstances would exclude an income item...

Evaluate the analysis presented by Shields and Company in Exhibits 1-7. What criteria would you use to evaluate and select an investment banker?

At death, Francine owns an interest in a passive activity property (adjusted basis of $160,000, suspended losses of $16,000, and fair market value of $170,000). What is deductible on Francine's final...

During 2016, your clients, Mr. and Mrs. Howell, owned the following investment assets: Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and mutual...

By written contract Ames agreed to build a house on Bowens lot for $165,000, commencing within ninety days of the date of the contract. Prior to the date for beginning construction, Ames informed...

Acme Corporations articles of incorporation require cumulative voting for the election of its directors. The board of directors of Acme Corporation consists of nine directors, each elected annually....

Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. Determine Rivera's civil fraud penalty.

Sarah owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it...

Luby Corporation acquires a 100% business-use automobile (MACRS 5-year recovery) on July 1, 2013 for $36,000. Luby does not elect Sec. 179 or bonus depreciation. What are depreciation deductions for...

Shane Quadri, contacted Don Hoffman, an employee of Al J. Hoffman & Co. (Hoffman Agency), to procure car insurance. Later, Quadris car was stolen on October 25 or 26. Quadri contacted Hoffman, who...

Explain the concepts of jurisdiction and minimum contacts. What application do they have in international disputes?

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....

Suppose that the court had ruled in the plaintiffs favor. How might that ruling have affected the plaintiffs contracts with other parties? On June 15, 1973, Maple Farms, Inc., formed an agreement...

Lili, Inc., a domestic corporation, operates a branch in France. The earnings record of the branch is as follows. For 2012-2015, Lili, Inc., reports U.S.-source taxable income of $500,000 each year....

Aqua, Inc., a calendar year corporation, has the following gross receipts and tax able income for 2011-2014: Aqua's first year of operations was 2011. a. When is Aqua first exempt from the AMT as a...

Gianni Sport was a New York manufacturer and distributor of women's clothing. Gantos was a clothing retailer headquartered in Grand Rapids, Michigan. In 1980, Gantos's sales total was 20 times...

Yount Inc.s auditors prepared the following reconciliation between book and taxable income. Younts tax rate is 34 percent. Net income before tax $378,200 Permanent book/tax differences . (33,500)...

What is Beta Corporations income tax liability assuming its taxable income is (a) $94,000, (b) $300,000, (c) $600,000. How would your answers change if Beta were a personal service corporation?

Henry and Mary entered into a written contract whereby Henry agreed to sell and Mary agreed to buy a certain automobile for $8,500. Henry drove the car to Marys residence and properly parked it on...

Broadway Management Corporation obtained a judgment against Briggs. The note on which the judgment was based reads in part: Ninety Days after date, I, we, or either of us, promise to pay to the order...

(a) On April 1, Mary Rich, at the solicitation of Super Fur Company, delivered a $3,000 mink coat to the company at its place of business for storage in its vaults until November 1. On the same day,...

The E-Commerce Dimension Did SFA and Bradfords online offer of licenses for the commercial use of Monroes image have any effect on the courts decision in this case? Why or why not?

Curtis is an executive on a business trip to the West Coast. He has driven his car on this trip and checks into the Hotel Ritz. The hotel has a guarded underground parking lot. Curtis gives his car...

On April 18, 2000, Philip Purkett parked his car, on which he owed $213 in payments, in his garage and locked the garage. Later that night, TWAS, Inc., a vehicle repossession company, broke into the...

Paula Enterprises hires Able to act as its agent to purchase a 1,000-acre tract of land from Thompson for $1,000 per acre. Paula Enterprises does not wish Thompson to know that it is the principal or...

What is an enterprise zone? Describe what types of businesses might benefit from opening in an enterprise zone. How might their success be interconnected?

Dillion whose taxable income is less than $ 300,000 has a tax rate of 33% on his ordinary income and $ 40,000 of net nonrecaptured Sec. 1231 losses at the start of the year. During the year, he...

Westwood Corporation has $100,000 of taxable income and $20,000 of tax preference items in the current year. Westwoods positive and negative AMT adjustment items (other than the ACE adjustment) are...

On April 30, 2010, Barack and George entered into a bet on the outcome of the 2010 Kentucky Derby. On January 28, 2011, Barack, who bet on the winner, approached George, seeking to collect the $3,000...

Tally held a savings account with American Security Bank. On seven occasions, Tallys personal secretary, who received his bank statements and had custody of his passbook, forged Tallys name on...

A computer manufacturer promoted the sale of a digital computer as a revolutionary breakthrough. The manufacturer made a contract to deliver one of these computers to a buyer. The seller failed to...

THE ETHICAL DIMENSION In this case, aquatic organisms were most directly at risk. Is it acceptable to apply cost-benefit analyses to situations in which the lives of people are directly affected?...

In addition to the temporary differences identified in Problems 4952, Kantner reported two permanent book-tax differences. It earned $7,800 in tax-exempt municipal bond interest, and it reported $850...

Compute the Federal income tax liability for the Valerio Trust. The entity reports the following transactions for the 2015 tax year. The trustee accumulates all accounting income for the year....

Shell Oil Company leased to Flying Tiger Line a gasoline tank truck with a movable ladder for refueling certain types of aircraft. Under the terms of the lease, Flying Tiger was to maintain the...

How might the outcome of this case have been different if Cameron had been merely an aircraft parts supplier, with his only profit to be from the sale of components to Anderson?

Roland Staemphfli was employed as the chief financial officer of Honeywell Bull, S.A. (HB), a Swiss computer company operating exclusively in Switzerland. Staemphfli purportedly arranged financing...

Continue with the facts of Problem 36. WhaleCo has determined that it will sell all of its MinnowCo stock at the end of year 3 for $250,000. Taking into account the rules regarding excess loss...

This year, Major Healy paid $40,000 of interest on a mortgage on his home (Major Healy borrowed $800,000 to buy the residence; $900,000 purchase price and value at purchase; $1,000,000 current...

Jacob, age 42, and Jane Brewster, age 37, are married and file a joint return in 2016. The Brewsters have two dependent children, Ellen and Sean, 10-year-old twins. Jacob is a factory supervisor; he...

A State statute empowered public school principals to suspend students for up to ten days without any notice or hearing. A student who was suspended for ten days challenges the constitutionality of...

Ford Motor Credit Co. is a subsidiary of Ford Motor Co. with its own offices, officers, and directors. Ford Credit buys contracts and leases of automobiles entered into by dealers and consumers. Ford...

Sludge, Inc., entered into a contract with XYZ, Inc., whereby Sludge was to build a building for XYZ in Detroit, Michigan, at the price of $1 million. Sludge was incorporated in Ohio; its principal...

Andrew, Bea, Carl, and Carl, Jr. (Carl's son), and Tetra Corporation own all of the single class of Excel Corporation stock as follows: Andrew, Bea, and Carl are unrelated. Bea owns 75% of the Tetra...

In the current year, Emily, a widow, engages in the following transactions. Determine the amount of the completed gift, if any, arising from each of the following occurrences. a. Emily names Lauren...

Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative scenarios. a. Passive investment income, $100,000; expenses associated with passive investment...

TRUE/FALSE 1. A store manager who believes a customer has stolen something may question him but not restrain him. 2. Becky punches Kelly in the nose. Becky has committed the tort of assault. 3. A...

For sixteen years, Mrs. Dorothy Mae Palmer had been married to an insulator who worked with asbestos products. Mrs. Palmer was not exposed to asbestos dust in a factory setting; rather, she was...

A conceived a secret process for the continuous freeze-drying of foodstuffs and related products and constructed a small pilot plant that practiced the process. A, however, lacked the financing...

How else might the government regulate digital funds to reduce the potential for cyber laundering?

Four people jointly own a summer cottage and use it solely for their personal enjoyment. Is this a partnership? What if they rent the cottage to other people for part of the year? Suppose a renter...

Joe Creel owned a NASCAR collectibles business named Joe's Racing Collectibles. In 1994, Creel brought Arnold Lilly and Roy Altizer into the business, which they reformed as a partnership named Joe's...

XYZ is a calendar-year corporation that began business on January 1, 2017. For 2017, it reported the following information in its current year audited income statement. Notes with important tax...

Plaintiff brings this cause of action against a manufacturer for the loss of one leg below the hip. The leg was lost when caught in the gears of a screw auger machine sold and installed by the...

What are some common ways e-business fraud is perpetrated?

While crossing an intersection, the client was struck by a vehicle driven by a minor. The minor's parents owned the vehicle, and the minor was driving with their knowledge and consent. The minor has...

Marigold Dairy Corporation sells milk products, including powdered milk formula for infants. Marigold hopes to increase sales of its powdered milk formula in Liberia and other African nations where...

Refer to the facts in the preceding problem. Mr. T is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash distribution from KLMN. a. Compute Mr. Ts share of partnership...

Curt incorporates Vogel Corporation on January 15 of the current year. Curt makes a $70,000 capital contribution including land having a $12,000 FMV, and Vogel makes a timely S election for this...

In 2016, Sondra makes taxable gifts aggregating $300,000. Her only other taxable gifts amount to $200,000, all of which she made in 1997. a. What is Sondra's 2016 gift tax liability? b. What is her...

Melindainvests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melindacould have invested the $200,000 in a bond recently issued by Surething, Inc. that pays 8 percent...

If the agreement between MAO and MNCPO had involved a third partyan international pageant organizationwould this have been a basis for concluding that Revels was a third party intended beneficiary?...

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...

Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair market value on July 1, 2014 (the date of death), was $45,000. The shares were distributed to Tyneka...

In 2011, Troy wins the Connecticut Lotto grand prize of $15 million. The Lotto contest is governed by the following rules. The prize money is to be paid in 20 equal annual installments (in this case,...

Through November, Tex has received gross income of $120,000. For December, Tex is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,000 of revenue at...

Shauna Coleman is single. She works as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income. She correctly calculated her AGI. However, she wasn't sure...

On Tuesday, June 11, Siniscalchi issued a $200 check on the drawee, Valley Bank. On Saturday morning, June 15, the check was cashed. This transaction, as well as others taking place on that Saturday...

Portland Shellfish Co. processes live shellfish in Maine. As one of the firms two owners, Frank Wetmore held 300 voting and 150 nonvoting shares of the stock. Donna Holden held the other 300 voting...