In May, Patricia Allen left her automobile on the shoulder of a road in the city of Erehwon after the car stopped running. A member of the Erehwon city police department came upon the car later that...

Baxter manufactures electric hair dryers. Julie purchases a Baxter dryer from her local Ace Drugstore. Cox, a friend and guest in Julies home, has taken a shower and wants to dry her hair. Julie...

A Question of Ethics New Orleans Paddlewheels, Inc. (NOP), is a Louisiana corporation formed in 1982, when James Smith, Sr., and Warren Reuther were its only share holders, with each holding 50...

Hanjuan Jin, a citizen of the Peoples Republic of China, began working at Motorola in 1998. She worked as a software engineer in a division that created proprietary standards for cellular...

You landed a summer internship with a company that processes dental insurance claims for insurance companies. The company receives the insurance claims from dental offices, achieves authorization...

Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in...

C&C Properties is an S corporation that owns two rental real estate undertakings: Carrot Plaza and Cantaloupe Place. Both properties produce an annual $10,000 operating loss. C&Cs Schedule K...

At his death, Andrew was a participant in his employers contributory qualified pension plan. His account reflects the following: Employers contribution ..$1,000,000 Andrews contribution 800,000...

Kurt Perschke was a grain dealer in Indiana. Perschke phoned Ken Sebasty, the owner of a large wheat farm, and offered to buy 14,000 bushels of wheat for $ 1.95 per bushel. Sebasty accepted the...

Jacobson, a Michigan resident, sued Hasbro Corporation for negligence after one of Hasbro's truck drivers fell asleep and ran his semi off the road and into Jacobson's house, causing structural...

Facts: The researcher is analyzing a problem involving the sale of goods on credit in state A. Authority: The following authority has been located concerning the problem: 1. State A's Uniform...

Maul, Inc., a calendar year S corporation, incurred the following items. Tax-exempt interest income ............. $ 7,000 Sales ....................... 140,000 Depreciation recapture income...

Scott, manufacturer of a carbonated beverage, entered into a contract with Otis, owner of a baseball park, whereby Otis rented to Scott a large signboard on top of the center field wall. The contract...

Alan Gellen is the facilities manager for the city of Milwaukee and makes all final decisions on purchasing items such as chairs, lights, and other supplies and materials. Alan also makes the final...

This year, Sigma Inc. generated $612,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. a....

Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2014: Complete Thoms 2014 Form 4562 and Schedule...

During the current year, Ron and Anne sold the following assets: a. Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales,...

Rebecca holds 100 shares of Gotchas stock that she purchased for $1,000 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and...

In 1992, Donna Smith telephoned Clark, the manager of Penbridge Farms, in response to an advertisement Clark had placed in the July issue of the Emu Finder about the availability for sale of proven...

The Minnesota adoption statute requires that any agency placing a child for adoption make a thorough investigation and not give a child to an applicant unless the placement is in the best interests...

1. What agency relationship exists between Toms and Parker? 2. If an agency relationship exists, when was a fiduciary duty created and what subduties apply to this case? Explain. 3. Is Parkers...

Ball-Mart, a baseball card store, had a 1968 Nolan Ryan rookie card in almost perfect condition for sale. Any baseball collector would have known that the card was worth at least $1,000; the...

Ken Sulejmanagic, aged 19, signed up for a course in scuba diving taught by Madison at the YMCA. Before the instruction began, Ken was required to sign a form releasing Madison and the YMCA from...

Casper and Cecile are divorced this year. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the...

Gerrit is a former employee of ABC Auto Repair Co. He enters ABCs repair shop, claiming that the company owes him $800 in back wages. Gerrit argues with ABCs general manager, Steward, and Steward...

Jack Smith was required by his bank to obtain two sureties for his line of credit of $100,000. Ellen Weiss has agreed to act as a surety for $50,000, and Allen Fox has agreed to act as a surety for...

John Hayes and Lynn Magosian, auditors for a public accounting firm, went to lunch at the Bay View Restaurant in San Francisco. John left his raincoat with a coatroom attendant, but Lynn took her new...

Edwin Edwards and Karen Davis owned EEE, Inc., which owned three convenience stores, all of which sold gasoline. Reid Ellis delivered to the three convenience stores $26,675.02 worth of gasoline for...

Lynette, a famous basketball player, is considering the possibility of transferring the sole right to use her name to promote basketball shoes produced and sold by the NIK Corporation. NIK will pay...

Fred Forgetful parks his personal car on a hill in sunny California and fails to properly set the brake or curb the wheels. As a result of Freds negligence, the car rolls down the hill, damages...

Jim, Liz, and Keith are equal partners in the JLK Partnership, which uses the accrual method of accounting. All three materially participate in the business. JLK reports financial accounting income...

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

Eclipse, Inc., a qualifying small taxpayer, has total gross receipts of $3,600,000 and DPGR of $2,160,000. In addition Eclipse has cost of goods sold of $1,000,000 and advertising and administrative...

Milena Weintraub and Larry Griffith were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffith owned 51 percent of the stock and Weintraub 49 percent. Weintraub...

Mrs. O is negotiating to purchase a tract of land from DC Company, which is a calendar year taxpayer. DC bought this land six years ago for $480,000. According to a recent appraisal, the land is...

A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming...

Xavier and his wife Maria have total W-2 income of $89,481. They will file their tax return married filing jointly. They had a total of $10,149 withheld from their paychecks for federal income tax...

Professor Lucas Phelps sent the following e-mail to Professor Marlin Jones: I recently read the opinion piece you wrote for the Sacramento Bee on affirmative action. Your opinion is incorrect, your...

1. Brooking agreed to sell a tract of land to Dover Pool & Racquet Club, Inc., on which Dover planned to build a swim and tennis club. Neither party to the contract knew that just before the contract...

Several students from a high school in Fairfax County, Virginia, and another in Tucson, Arizona filed suit against iParadigms for copyright infringement. iParadigms is the company that owns and...

Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexanders wealthy uncle, Michael, decides to give Alexander a car for Christmas. In...

Under which legal theory or theories might Sun Farms claim that its obligation under the contract has been discharged by operation of law? Discuss fully. Vals Foods signs a contract to buy 1,500...

Underwood, the CFO of TechCo, Inc., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $50 million of the earnings of TechCos foreign subsidiaries. All of these...

Cornell purchased a 15-year, $25,000 bond from Fulvous Corporation for $20,000 eight years ago. Interest of $2,300 has been amortized over the eight years and added to Cornell's bond basis. In the...

Some businesses are aggressive at suing publications that report negative news about them. A cigarette company sued CBS for interviewing a disgruntled former executive; an infomercial producer sued...

In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $ 1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt...

The San Antonio Retail Merchants Association (SARMA) was a credit reporting agency. It was asked by one of its members to furnish information on William Douglas Thompson III. It supplied information...

1. Phishing is the method of: a. Using e-mail or other Internet applications to deceive people into disclosing valuable personal information. b. Convincing a person to divulge personal information...

Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an...

Fastener Corp. sent a letter to Renzo Box Co. that was signed by Ronald Lee, Fasteners sales manager, and read as follows: We hereby offer you 200 type #14 Fastener bolts at $5 per bolt. This offer...

Gilleo opposed American participation in the war in the Persian Gulf. She displayed a large sign on her front lawn that read, Say No to War in the Persian Gulf, Call Congress Now. The city of Ladue...

1. Should the Foreign Sovereign Immunities Act preclude this lawsuit? Why or why not? 2. Does the act of state doctrine bar Robco from seeking to enforce the contract? Explain. 3. Suppose that prior...

Describe four types of costs that businesses must absorb due to the regulatory process.

Assume that Garner had filed his action in a Nevada state court. Would that court have personal jurisdiction over Foreman or his manager? Explain. Stan Garner resides in Illinois and promotes boxing...

Would a court likely decide that Odins employment contract falls within the Statute of Frauds? Why or why not? Charter Golf, Inc., manufactures and sells golf apparel and supplies. Ken Odin had...

Diana, a partner in the cash basis HDA Partnership, has a one-third interest in partnership profits and losses. The partnerships balance sheet at the end of the current year is as follows: Diana...

1. Woodbine had petitioned the INS to allow Filipinos as RNs, committing to pay them the same wages, but did not do so. What factors may have led to this failure? 2. Some of the Filipino RNs were...

Spaulding & Kimball Co. ordered from Aetna Chemical Co. 75 cartons of window washers. The buyer received them and sold about a third to its customers but later refused to pay for them, claiming that...

Silver Corporation has 2,000 shares of common stock outstanding. Howard owns 600 shares, Howards grandfather owns 300 shares, Howards mother owns 300 shares, and Howards son owns 100 shares. In...

PepsiCo entered into a contract to sell its corporate jet to Klein for $4.6 million. Before the deal closed, the plane was sent to pick up PepsiCo's chairman of the board, who was stranded at Dulles...

Wilken owes Rivera $2,000. Howie promises Wilken that he will pay Rivera the $2,000 in return for Wilkens promise to give Howies children guitar lessons. Is Rivera an intended beneficiary of the...

Myrna and James Brown ordered a $35,000 motor home from R.V. Kingdom, Inc. The manufacturer delivered the vehicle to R.V. Kingdom, with title in the dealers name. The Browns agreed to accept the...

Albert, Betty, and Carol own and operate the Roy Lumber Company, a limited liability partnership (LLP). Each contributed one-third of the capital, and they share equally in the profits and losses....

Pileggi owed Young money. Young threatened to bring suit against Pileggi for the amount due. Pileggi feared the embarrassment of being sued and the possibility that he might be thrown into...

Tommy Morgan was a 20-year employee of New York Life Insurance Company. At age 52, his career at New York Life included a promotion, high marks for job performance, and a good reputation among his...

Spinone Corporation directs its sole shareholder, James, to exchange all of his common stock valued at $200,000 (basis of $50,000) for $100,000 of common stock, $70,000 of preferred stock, and...

LO Ventures, LLC, doing business as Reef point Brew house in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an...

Does a pawnbroker who purchases property in good faith acquire good title to that property? Can the pawnbroker pass good title? [Fly v Cannon, 813 SW2d 458 (Tenn App)]

Jane Jackson purchased a sealed can of Katydids, chocolate-covered pecan caramel candies manufactured by NestlT. Shortly after, Jackson bit into one of the candies and allegedly broke a tooth on a...

Janet, a twenty-year-old woman, applied for a position driving a truck for Federal Trucking, Inc. Janet, who is 54 tall and weighs 135 pounds, was denied the job because the company requires that all...

Mrs. Downing was fitted for dentures by a dentist, Dr. Cook. After she received her dentures, Mrs. Downing began experiencing mouth pain that she attributed to Dr. Cooks manufacture of dentures that...

Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2014. The assets of the business are as follows: Rod and Agnes agree that $50,000 of the purchase price is for...

The president and vice president of USA Corporation receive benefits that are unavailable to other employees. These benefits include free parking, payment of monthly expenses in a local club,...

Did Tamik or Arnett violate the Foreign Corrupt Practices Act in this scenario? Why or why not? Isabel Arnett was promoted to chief executive officer (CEO) of Tamik, Inc., a pharmaceutical company...

On May 23, Deborah McCullough, a secretary, purchased a Chrysler LeBaron from Bill Swad Chrysler-Plymouth. The automobile was covered by both a limited warranty and a vehicle service contract...

Arthur, Barbara, Carl, and Debra decided to form a corporation for bottling and selling apple cider. Arthur, Barbara, and Carl were to operate the business, and Debra was to supply the necessary...

Smith was employed as a salesman for Borden, Inc., which sold food products in 63 counties in Arkansas, 2 counties in Missouri, 2 counties in Oklahoma, and 1 county in Texas. Smiths employment...

Use this information to prepare a net worth analysis of Slicks girlfriend. Steve (Slick) Willy, 45, just got out of jail. As a reformed citizen on parole, Slick decides to go into business for...

After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $300,000....

1. What type of franchise was Del Reys La Grande Enchilada restaurant? 2. If Del Rey operates the restaurant as a sole proprietorship, then who bears the loss for the damaged kitchen? Explain. 3....

When Teris outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash, an account receivable (fair market value of $60,000, inside basis to the partnership of...

C&D Services contracts with Ace Concessions, Inc., to service Aces vending machines. Later, C&D wants Dean Vending Services to assume the duties under a new contract. Ace consents. What type of...

Buffett sent a violin to Strotokowsky by International Parcel Service (IPS), a common carrier. Buffett declared the value of the parcel at $500 on the pick-up receipt given him by the IPS driver. The...

On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co.; she named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first...

Wesley Hall, an independent contractor managing property for Acree Investments, Ltd., lost control of a fire he had set to clear ten acres of Acree land. The runaway fire burned seventy-eight acres...

Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year. Income from services ............... $400,000 Salaries paid to employees...

Rollo and Andrea are equal owners of Gosney Company. During the current year, Gosney's taxable income before considering salaries paid to Andrea and Rollo is $140,000. Rollo is single, his salary is...

The Coffee Company engages in the following transactions during the taxable year. Sells stock held for three years as an investment for $30,000 (adjusted basis of $20,000). Sells land used in the...

Boulder Corporation owns all of the stock of PebbleCo, so they constitute a Federal affiliated group and a parent-subsidiary controlled group. By completing the following chart, delineate for...

Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year: Revenues from sales of goods $ 783,200 Cost of goods sold (FIFO) ...

Chanel, Inc. is a corporate entity duly organized under the laws of the state of New York, with its principal place of business in New York City. Chanel is engaged in the business of manufacturing...

In 2014, Bertha Jarow (head of household with three dependents) had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two...

Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority...

Mabel and Alan, who are in the 35% tax bracket, recently acquired a fast-food franchise. Both of them will work in the business and receive a salary of $175,000. They anticipate that the annual...

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and...

Suppose that the neighbor starts to help John but then realizes that, because of the layout of Johns property, putting the building back together will take much more work than dismantling it took....

Did GFI have a legitimate reason to expect that Egan would accept the fourth shipment? Why or why not? GFI, Inc., a Hong Kong company, makes audio decoder chips, one of the essential components used...

Suppose that the sunken barge in United States v. Carroll Towing Co. and its cargo are worth $100,000. Assume that the probability that the barge would break loose if the bargee is not present equals...

Former Enron Chief Financial Officer Andrew Fastow, in his testimony against his former bosses at their criminal trial for fraud, said, I thought I was being a hero for Enron. At the time, I thought...

The Baton Rouge Crime Stoppers (BCS) offered a reward for information about the South Louisiana Serial Killer. The information was to be provided via a hot line. Dianne Alexander had survived an...