Gretz is the chair of the board of directors of Faraday, Inc., and Williams is the chair of the board of directors of Firebrand, Inc. Faraday is a manufacturing corporation, and Firebrand is a...

Determine the current tax deduction allowed in each of the following situations: a. Doug, Johns son, buys a new car that is titled in Dougs name. John pays for Dougs auto license tag. The tag costs...

Pass took his single-engine Piper airplane to Shelby Aviation for inspection and service. The bulk of Shelby Aviation's business was service-oriented. The invoice prepared by Shelby Aviation refers...

Perch, Inc., an exempt organization, records unrelated business taxable income of $4 million. a. Calculate Perchs UBIT. b. Prepare an outline of a presentation you are going to give to the new...

Ironwood Exploration, Inc. (Ironwood) owned a lease on oil and gas property located in Duchesne County, Utah. Ironwood contracted to have Lantz Drilling and Exploration Company, Inc. (Lantz), drill...

Using the legend provided, classify the impact that each of the following items has on regular taxable income when computing AMTI. Ignore the ACE adjustment. Legend I = Increase in taxable income D =...

The stock of Quail Corporation is held as follows: 85% by Pheasant Corporation and 15% by Gisela, an individual. Quail Corporation is liquidated in December of the current year pursuant to a plan...

For three generations, the Dexter family has sent its children to Private University, preparing them for successful professional careers. The Edna Dexter Trust was established in the 1950s by...

Doug contributes services but no property to the CD Partnership upon its formation. What are the tax implications of his receiving only a profits interest versus his receiving a capital and profits...

Carl Carson, a single taxpayer, owns 100% of Delta Corporation. During 2015, Delta reports $150,000 of taxable income. Carl reports no income other than that earned from Delta, and Carl claims the...

Guy, Alma, and Kara form the Ivory Partnership. In exchange for a 30% capital interest, Guy transfers property (basis of $200,000; fair market value of $400,000) subject to a liability of $100,000....

James contracts to make repairs to Bettys building in return for Bettys promise to pay $12,000 upon completion of the repairs. After partially completing the repairs, James is unable to continue....

What are the differences between anomalies and fraud?

Larry is interested in acquiring a business owned by Jane. If Jane's business is organized as a corporation, what options are available to Larry in acquiring the business? Explain to Larry the...

At an annual retreat for Major League Baseball umpires, a Wilson [Sporting Goods Company] representative gave [Edwin] Hickox an umpires mask with what the representative claimed was a new, safer...

Erwick was dismissed from her job at the C & T Steel Company because she was an unsatisfactory employee. At the time, Erwick was active in an effort to organize a union at C & T. Is the dismissal...

The following situations are similar (in all of them, Juanitas laptop computer is stolen), yet three different crimes are described. Identify the three crimes, noting the differences among them. (a)...

Zandra Quartney is a manager/buyer in charge of purchasing childrens shoes for a large retail store chain. She is also a die-hard football fan. This year, the Super Bowl will be played in the Georgia...

Colorado Fuel sold caustic soda to a buyer in Bombay under a CIF contract. The soda was fully loaded aboard a ship when a labor strike made it impossible for the vessel to sail. As a result, the soda...

Phillips contracted to buy naphtha from Tradax for shipment from Algeria to Puerto Rico on C&F terms. Shipment was to be made between September 20 and September 28, 1981. The agreement incorporated...

Was the January Bylaw valid? Air Products and Chemicals, Inc. (Air Products) launched a tender offer to acquire 100percent of the shares of Airgas, Inc. (Airgas). The Airgas board of directors...

To figure out if Yahoos telecommuting is less productive than it should have been Mayer looked at the log of Yahoos Virtual Private Network to see how frequently employees checked in. What do you...

In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the sale of an investment asset. In its second year, Firm KZ recognized $500,800 ordinary business income...

TRUE/FALSE 1. To be enforceable, all contracts must be in writing. 2. Abdul hires Sean to work in his store, and agrees to pay him $9 per hour. This agreement is governed by the UCC. 3. If an offer...

Joan, a patient confined in a hospital, has a rare disease that is of great interest to the public. Carol, a television reporter, requests Joan to consent to an interview. Joan refuses, but Carol,...

Between 1994 and 1998, Richard Svoboda, a credit officer for NationsBank N.A., in Dallas, Texas, evaluated and approved his employers extensions of credit to clients. These responsibilities gave...

Two commonly-recognized measures of the fairness of an income tax structure are horizontal equity and vertical equity. a. Discuss what is meant by horizontal equity and vertical equity as it pertains...

During 2017, Gorilla Corporation has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions...

Equisure, Inc., was required to file audited financial statements when it applied to have its stock listed on the American Stock Exchange (AmEx). It retained an accounting firm, defendant Stirtz...

For seven years, Desford Potts had owned a six-acre tract of land within the corporate limits of the city of Franklin. The tract contained a livestock barn in which Potts stored lumber and other...

Amador Pena, who had three insurance policies on his life, wrote a will in which he specified that the proceeds from the insurance policies should go to his children instead of to Leticia Pena...

Hornell Brewing Company is a supplier and marketer of alcoholic and nonalcoholic beverages, including the popular iced tea drink, Arizona. In 1992, Stephen A. Spry and Don Vultaggio, Hornells...

C&N and Alabama Siding performed construction work at job sites throughout the southeastern United States. On Wednesday of each week, the foreman at each job site would telephone Bivens and give her...

Elizabeth owns equipment that cost $500,000 and has an adjusted basis of $230,000. If the straight-line method of depreciation had been used, the adjusted basis would be $300,000. a. What is the...

Crazy Eddie, Incorporated manufactures baseball caps and distributes them across the northeastern United States. The firm is incorporated and headquartered in New York and sells to customers in...

Robert and Stanley held legal title of record to adjacent tracts of land, each consisting of a number of five acres. Stanley fenced his five acres in 1986, placing his east fence fifteen feet onto...

James Mitchell bought a building in Los Angeles, California, in February 2000 and applied to United National Insurance Co. for a fire insurance policy. The application stated, among other things,...

Refer to Section 402A of the Restatement (Second) of Torts: What does "the seller is engaged in the business of selling such a product" mean? Who is excluded by this? What does "it is expected to and...

Suppose that Fitl and Strek had included in their deal a written clause requiring Fitl to give notice of any defect in the card within 7 days to 1 month of its receipt. Would the result have been...

Ben and Pete form a corporation to run a real estate investment management company. Ben contributes cash of $40,000 to the corporation in exchange for 50% of its stock. Pete obtains his 50% ownership...

Gary McCoy ordered a pizza from a Papa John's restaurant. The restaurant was owned by RWT, Inc., a franchisee of Papa John's International, Inc. RWT did business as Papa John's Pizza. Wendell Burke,...

1. A mere eight days after it was formally incorporated as a business, Schaefer Salt Recovery Inc. (SSR) filed a petition under Chapter 11 of the bank ruptcy code. SSRs only assets were mortgages on...

Gibbons, Inc., and Marvin Corporation are manufacturers who sell a variety of household cleaning products in interstate commerce. On national television, Gibbons states that its laundry liquid is...

What would be the advantages and disadvantages of a universal principle of proximate cause applied everywhere by all courts in all relevant cases? Discuss.

Go to the IBM companys Web site (www.ibm.com) and download the most recent financial statements. In the notes to the financial statements, read the significant accounting policies concerning revenue...

Primesouth Bank issued a loan to Okefenokee Aircraft, Inc. (OAI), to buy a plane. OAI executed a note in favor of Primesouth in the amount of $161,306.25, plus interest. The plane secured the note....

Nashville Pro Hockey, LLC,was a limited liability company organized under the laws of Tennessee. The LLC owned and operated the Nashville Nighthawks, a minor-league professional hockey team. On...

During 2015, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses .$ 8,000 Investment interest expense .16,000 Other investment activity expenses...

Woeste ate raw oysters at a restaurant and died a week later from the bacteria Vibrio vulnificus. The bacteria naturally occur in oysters from warm water. Vibrio has no effect on most people, but can...

Mary is the owner of a small flower shop. With only 12 employees, the environment is one of trust. Mary personally knows each employee, and most have worked at the shop since its opening. Although...

Johnson Controls, Inc., is a Wisconsin company that manufactures building equipment and management systems, and distributes its products worldwide through direct sales, contractors, and distributors....

The board of directors of White Pearl, Inc., a private foundation, consists of Charlyne, Beth, and Carlos. They vote unanimously to provide a $325,000 grant to Marcus, their business associate. The...

On March 1 of the current year, Alice, Bob, Carla, and Dick form Bear Corporation and transfer the following items: Property Transferred Alice purchased the land and building several years ago for...

Evergreen Corporation (calendar year end) acquired the following assets during the current year (ignore 179 expense and bonus depreciation for this problem): Asset Placed in Service Date Original...

You receive a telephone call from a company you never do business with requesting a reference on one of your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be...

1. Why was James arguing on appeal that intent to deceive was not a requirement for fraud? Given that Waldrop had told James that he and Marguerite were married, when in fact they werent, couldnt...

Ronald Naquin, an employee of Air Engineered Systems & Services, Inc., owned one-third of its outstanding shares. After six years, he was fired and an offer was made to buy out his interest in Air...

Villegas was co-owner and vice-president of Plaza Health Laboratories, a blood testing laboratory in Brooklyn, New York. On two occasions between April and September, Villegas loaded containers of...

Brad Longstreet, a paralegal at the firm of Henderson & Ruohniemi, created a system for dissolutions of marriage. It was a good system with written system requirements, instructions, and forms and...

Mrs. A is an unmarried taxpayer with one dependent child living in her home. Her AGI is $40,000, and she does not itemize deductions. The 18-year-old child earned $6,980 from a part-time job and...

Jessica plans to invest $150,000 in a second business. She expects to generate a 12 percent before-tax return on her investment the first year. Her marginal tax rate is 25 percent due to the income...

Ken sold a rental property for $500,000. He received $100,000 in the current year and $100,000 each year for the next four years. $400,000 of the sales price was allocated to the building and the...

For more than forty years, Rose Cipollone smoked between one and two packs of cigarettes a day. Upon her death from lung cancer, Roses husband, Antonio Cipollone, filed suit against Liggett Group,...

Blue Horizons, Inc., a U.S. corporation, is a manufacturing concern that sells most of its products in the United States. It also does some business in the European Union through various branches....

Compare the provision for the non-recognition of gain or loss on contributions to a partnership (i.e., 721) with the similar provision related to corporate formation (i.e., 351). What are the major...

The ABC Corporation is considering a joint venture with another company to start an Internet based business. The new business will tap into the expertise ABC has developed in writing the complex...

Lewis and Laurie are married and jointly own a home valued at $240,000. They recently paid off the mortgage on their home. In need of cash for personal purposes unrelated to the home, the couple...

Davis and Shipman founded a partnership under the name of Shipman & Davis Lumber Company. Four years later, the partnership was dissolved by written agreement. Notice of the dissolution was published...

Should a courts scrutiny of the price paid for collateral be different when the purchaser is the secured party or someone related to the secured party? Explain.

Suzy Wetlaufer, editor of the Harvard Business Review, interviewed former General Electric CEO Jack Welch for a piece in the business magazine. In December 2001, she asked that the piece be withdrawn...

Dove Corporation, a calendar year C corporation, had the following information for 2014: Net income per books (after-tax)........... $386,250 Taxable income.................. 120,000 Federal income...

In 2010, Nuts & Seeds Inc., purchased a new high-tech shelling machine from Soft-Core Corporation. Nuts and Seeds paid $1,000 in cash and gave Soft-Core a $29,000 note. The note is non-recourse and...

The Seabrook Island Property Owners Association, Inc., is a nonprofit corporation organized under state law to maintain streets and open spaces owned by property owners of Seabrook Island. Seabrook...

Ms. Sturm owns a tax-deferred retirement account with a $200,000 current balance. She in-tends to roll over this balance into a new Roth IRA before the end of the year. Ms. Sturms current marginal...

Logan and Johnathan exchange land, and the exchange qualifies as like kind under 1031. Because Logan's land (adjusted basis of $85,000) is worth $100,000 and Johnathan's land has a fair market value...

Home Indemnity, an insurance company, paid one of its insureds after the theft of his car. The car reappeared in another State and was sold to Michael Schrier for $4,300 by a used car dealer. The...

Virgil Deemer and Thomas Cornwell, employees at a Whirlpool Corporation plant, refused to comply with a supervisors order that they perform maintenance work on certain mesh screens located some 20...

Alexandra is a veterinarian employed by Fast Vet Services. Susan is a selfemployed veterinarian. During the current year, Alexandra and Susan have the same amounts of income and deductions. Why might...

Hawaii law requires the state to deposit part of its annual pineapple income in the Hawaiian Long-lasting Fund. All income from the fund is deposited in the states general fund. The funds general...

Clarence is a packrat. He has clothes from when he was in high school some 20 years ago that he never wears. He also has household items that have accumulated over the past 15 years. Some of these...

David Dental, DDS, and his unmarried partner Sally Surgeon, MD have lived together for the past five years. Both are at the peak of their careers and decide to buy a new show case home in La Jolla,...

Armeen ran a stop sign and hit the Smith's car, killing their child. He had $1.5 million in insurance. The Smiths offered to settle the case for that amount, but Liberty State, Armeen's insurance...

Tom and Alice Honeycutt, ages 35 and 36, respectively, live at 101 Glass Road, Delton, MI 49046. Tom is a county employee, and Alice is a self-employed accountant. Tom's Social Security number is...

On May 10, the Apple Company, acting through one Brown, entered into a contract with Crane for the installation of a milking machine at Cranes farm. Following the enumeration of the articles to be...

Hammond, a mediator, assisted in negotiations between a union and a company. After mediation, the union declared that an agreement had been reached. The employer denied that an agreement had been...

Copenhaver wrote a will in ink, which was found with her other papers in her bedroom at her death. Pencil lines had been drawn through every provision of the will and the signature. There was no...

1. What do you think Telefexs specific theory of infringement was? 2. Which element of patentability does KSR claim Teleflex is missing in the combined device?

Kelly decided to invest in Lime, Inc. common stock after reviewing Lime's public disclosures, including recent financial statements and a number of press releases issued by Lime. On August 7, 2014,...

Gardner-Denver is the largest manufacturer of ratchet wrenches and their replacement parts in the United States. Gardner-Denver had two different lists of prices for its wrenches and parts. Its blue...

Hydrotech Systems, Ltd., a New York corporation, agreed to sell wave-pool equipment to Oasis Waterpark, an amusement park in Palm Springs, California. Although Hydrotech was not licensed to install...

Sabastian Hafner joined a start-up business with a business plan focused on making breads without common food allergens, such as wheat, yeast, dairy, and gluten, to be marketed in a major...

Sally owns 100% of the outstanding stock of Eta, Theta, Phi, and Gamma Corporations, each of which files a separate return for the current year. During the current year, the corporations report...

Assume the same facts as in Problem 13-57 except the joint tenancy land was held in the names of Bonnie and her son Doug, joint tenants with right of survivorship. Also assume that Bonnie provided...

Olga is married and files a joint tax return with her husband. What amount of AMT exemption may she deduct under the following alternative circumstances? (Use 2014 AMT exemption amounts.) a. Her AMTI...

Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13 to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics...

In 2004, Tamara Cohen, a real estate broker, began showing property in Manhattan to Steven Galistinos, who represented comedian Jerry Seinfeld and his wife, Jessica. According to Cohen, she told...

What theory or theories might a court use to hold Wallace liable for insider trading? Dale Emerson served as the chief financial officer for Reliant Electric Co., a distributor of electricity serving...

Mike Trujillo has been involved in a serious relationship with his high school sweetheart, Bonny, for five years; they have even discussed marriage. One day, Bonny told Mike that she was seeing...

1. How would you encourage the new officers enthusiasm for community policing and help them buck the prevailing culture? 2. Is Officer Blake a good candidate to be a mentor for a new officer? 3....

The New Tech Corporation contributes some of its inventory of scientific equipment to the computer department of Great University during the current year. At the date of the contribution, the...