Alex purchases a building in 1986 at a cost of $500,000. ACRS depreciation on the building totals $320,000, whereas straight-line depreciation would be $260,000 for the same period. Alex sells the...

The case before this Court stems from a real estate transaction for a foreclosed car wash in Bellefontaine, Ohio. [A court had appointed Patrick Shivley to be a receiver for the protection of the...

Paul and Anna plan to form the PA LLC by the end of the current year. The members will each contribute $80,000 cash, and in addition, the LLC will borrow $240,000 from First State Bank. The $400,000...

Paulas basis in her partnership interest is $60,000. In liquidation of her interest, the partnership makes a proportionate distribution to Paula of $20,000 of cash and inventory (basis of $5,000 and...

Pace Corporation reports the following results for the current year: Gross profit on sales .. $120,000 Long-term capital loss 10,000 Short-term capital loss 5,000 Dividends from 40%-owned domestic...

Correct the following citation: Hoang Nguyen v. Fasano 84 F. Supp.2d 1099,(S.D.Cal.2000).

At the beginning of the current year, Able and Baker formed the AB Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50%...

Julie Anne Gaskill is an oral and maxillofacial surgeon in Bowling Green, Kentucky. Her medical practice is a sole proprietorship consisting of her as the sole surgeon, with office staff. She sees...

Firm UT sold realty to an unrelated buyer for $40,000 cash plus the buyers assumption of a $166,700 mortgage on the property. UTs initial cost basis in the realty was $235,000, and accumulated tax...

MegaGlobular is a large, private international corporation that has been experiencing problems with fraud. Management has heard of the success other companies have had with whistle-blowing programs...

An agent embezzles funds from his principal and uses the funds to buy a car. What duties has the agent violated? Who is entitled to ownership of the car?

Why does the presence of a capitalist system affect a nations perspective on corporate governance? Corporate governance has become an issue of concern not only for U.S. corporations, but also for...

Enders, Inc., a domestic corporation that invests in foreign securities, reports total taxable income for the tax year of $290,000, consisting of $208,800 in U.S.-source business profits and $81,200...

Andys Sales (owned by Andy Adams) sold a well-built trampoline to Carl and Shirley Wickers. The Wickerses later sold the trampoline to Herbert Bryant. While using the trampoline, Herberts 14-year-old...

On behalf of BRJM, LLC, Nicolas Kepple offered Howard Engelsen $210,000 for a parcel of land known as lot five on the north side of Barnes Road in Stonington, Connecticut. Engelsens company, Output...

Four friends, John Bertram, Matt Norden, Scott Olson, and Tony Harvey, all residents of Ohio, traveled to the Upper Peninsula of Michigan to go snowmobiling. On their first day of snowmobiling, after...

Read and brief the following cases: a. Willie Nelson Music Co., 85 T. C. 914 b. Independent Contracts, Inc., 73 AFTR2d 94-1406

Which of the following statements would be acceptable in a performance evaluation? Even though Jacquie was out on a few religious retreats, she exceeded June sales goals by 10 percent. Although a...

FC Schaffer & Associates, Inc. is an engineering firm based in Louisiana that did business with ODA Trading Agency, an Ethiopian entity that represents businesses wanting to do business in Ethiopia....

(True and false) 1. Fraud risks are higher when the entity with whom you are transacting business cant be seen. 2. Data theft is a bigger problem in e-business transactions than money theft. 3....

Multiply Choice 1. Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to: (a) Explain the meaning...

In 2009, Jessica placed $250,000 in a savings account listing ownership as follows: "Jessica, Keri, and Jason, joint tenancy with the right of survivorship." Keri and Jason are Jessica's adult...

Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro owns 50% and Pittro owns 50% of the stock in the corporation. Osprey has the following assets (none of which were...

Ball writes to Sullivan and inquires how much Sullivan is asking for a specific forty-acre tract of land Sullivan owns. In a letter received by Ball, Sullivan states, I will not take less than...

Using the legend provided, classify each of the following citations as to the type of court. Legend D = District Court T = Tax Court C = Court of Federal Claims A = Circuit Court of Appeals U =...

Suppose you are employed by MS Corporation. In year 1, you received nonqualified employee stock options (NQOs) to acquire 10,000 shares of MSs stock at an Exercise price of $40 share. On that date,...

Firm DFG plans to open a foreign subsidiary through which to sell its manufactured goods in the European market. It must decide between locating the subsidiary in Country X or Country Z. If the...

Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load-bearing beams in the great room cracked and appeared to be steadily weakening. The patio did...

Evans was a loan officer for a bank and in this capacity had approved several loans to Docherty, all of which were legitimate and were repaid on time. Evans asked Docherty to apply for a loan from...

Carrow owned a farm and Arnold and Mitchell, who were partners in a real estate partnership, were interested in buying it. In mid-April 2003, they met with Carrow at his farm. At this meeting, Carrow...

What two skills distinguish a licensed attorney?

Larry J. Goodwin and his wife maintained a checking and savings account at City National Bank of Fort Smith (Bank). Bank also had a customer named Larry K. Goodwin. Two loans of Larry K. Goodwin were...

EarthTones, Inc., was a wholly owned subsidiary of Cutlinger Corporation. Several years ago, EarthTones acquired numerous oil leases and began exploration activities to determine their suitability...

(Multiple Choice) 1. Future careers in fraud will most likely be: a. In low demand. b. In moderate demand. c. Low paying. d. In high demand and financially rewarding. 2. Studying fraud will help you:...

Mira and Lemma are equal owners of an entity. Each contributed $25,000 cash to the entity. In addition, the entity obtains a loan of $100,000. The profits for the year are $30,000. Determine Mira and...

Physicians Mutual Insurance Co. issued a policy covering Browns life. The policy declared that it did not cover any deaths resulting from mental disorder, alcoholism, or drug addiction. Brown was...

Monica Beam, a shareholder of Martha Stewart Living Omnimedia, Inc. (MSO), filed a derivative action against Martha Stewart and the other MSO board of directors, alleging that Stewart breached her...

Mila purchased a Zaffre Corporation $100,000 bond 10 years ago for its face value. The bond pays 5% interest annually. In a "Type E" reorganization, Zaffre exchanges Mila's bond with 10 years...

Roscoe contributes a personal use asset with an adjusted basis of $15,000 and a fair market value of $28,000 on the contribution date. Determine if any gain or loss is recognized and the basis under...

Operating out of an apartment in Secane, Pennsylvania, Hratch Ilanjian convinced Vicken Setrakian, the president of Kenset Corp., that he was an international businessman who could help Kenset turn...

THE LEGAL ENVIRONMENT DIMENSION If Waddell had been allowed to bring a claim for breach of contract, how might his supervisor, Sophia Darling, have defended her conduct? Explain your answer THE...

Tiny and Tim each own half of the 100 outstanding shares of Flower Corporation. This year Flower reported taxable income of $6,000 and was subject to a 25 percent tax rate. In addition, Flower...

ETHICS: John Stevens owned a dilapidated apartment that he rented to James and Cora Chesney for a low rent. The Chesneys began to remodel and rehabilitate the unit. Over a four-year period, they...

On May 7, Roy, a minor, a resident of Smithton, purchased an automobile from Royal Motors, Inc., for $18,750 in cash. On the same day, he bought a motor scooter from Marks, also a minor, for $750 and...

Ankir is hired by Jamison as a traveling salesperson. Ankir not only solicits orders but also delivers the goods and collects payments from his customers. Ankir deposits all payments in his private...

Nation-Wide Check Corp. sold money orders through local agents. A customer would purchase a money order by paying an agent the amount of the desired money order plus a fee. The customer would then...

Evelyn is the president and sole shareholder of Ephron Corporation. Ephron is an accrual basis taxpayer and uses a calendar year. Evelyn is a cash basis, calendar-year taxpayer. During the second...

The following table contains the facts for this problem. You are working for Cabo (the acquirer), who wants to purchase Golden Gate. Cabo is considering a taxable stock purchase at a price of $...

Save the Squirrels, Inc., a 501(c)(3) organization that feeds the squirrels in municipal parks, receives a $250,000 contribution from Animal Feed, Inc., a corporation that sells animal feed. In...

Lisa Winters signed up to take a Latino dance class at the Santa Monica Family YMCA, sort of a dancing-with-the-neighbors experience. However, when she arrived for class on April 17, 2002, the Latino...

In the current year, Burbank Corporation incurs an AMT for the first time. Its AMT is due to an ACE adjustment resulting from Burbanks receiving $4 million of life insurance proceeds upon the death...

Allen, Barker, and Cooper are cosureties on a $750,000 loan by Durham National Bank to Kingston Manufacturing Co., Inc. The maximum liability of the sureties is as follows: Allen, $750,000; Barker,...

On the death of their mother, the children of Jane Smith gave their interests in their mothers estate to their father in consideration of his payment of $1 to each of them and his promise to leave...

Woodson Walker and Associates leased computer equipment from Park Ryan Leasing. The lease said nothing about assignment. Park Ryan then assigned the lease to TCB as security for a loan. Park Ryan...

Clark sold securities for a $50,000 short-term capital loss during the current year, but he has no personal capital gains to recognize. The C&L General Partnership, in which Clark has a 50% capital,...

Catherine Bosley worked as a television news anchor for WKBN Channel 27 in Youngstown, Ohio. While on vacation with her husband in Florida she participated in a "wet t-shirt" contest, which was...

Madison and Tilson agree to form a limited partnership with Madison as general partner and Tilson as the limited partner, each to contribute $12,500 as capital. No papers are ever filed, and after...

Freelin Conn filed a voluntary petition under Chapter 7 of the Bankruptcy Code on September 30, 2011. Conn listed Banc- Ohio National Bank as having a claim incurred in October 2010 in the amount of...

A signed a contract agreeing to sell land he owned but reserved the right to take the hay from the land until the following October. He gave the contract form to B, a broker. C, a prospective buyer,...

Generally, what requirements must be met before Superior can recover damages under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Could Superior meet these requirements?...

Glen Smith contracted with Dave Watson, a common carrier, to transport 720 hives of live bees along with associated equipment from Idabel, Oklahoma, to Mandan, North Dakota. At 9:00 A.M. on May 24,...

On Thursday, Dennis mailed a letter to Tanyas office offering to sell his car to her for $3,000. On Saturday, having changed his mind, Dennis sent a fax to Tanyas office revoking his offer. Tanya did...

During the current year, the Harlow Corporation, which specializes in commercial construction, has the following property transactions: a. In April, a tornado damages a crane and a dump truck at one...

G.S. Adams Jr., vice president of the Washington Bank & Trust Co., met with Bruce Bickham. An agreement was reached whereby Bickham agreed to do his personal and corporate banking business with the...

Conrad Schaneman Sr. had eight sons and five daughters. He owned an eighty acre farm in the Scottsbluff area of Nebraska. Conrad was born in Russia and could not read or write English. All of his...

Ms. M was born in 1918. After retiring, Ms. M returned to Fairfield, South Carolina, where she lived on her family farm with her brother, a dentist, until his death in the early 1980s. Ms. M never...

Georgia won the Massachusetts lottery, which means that she will receive $ 28,000 per year for the next 30 years. Georgia purchased the lucky ticket in March, and she was selected the winner in June....

1. Staples, following extensive injuries in an automobile accident, was declared mentally incompetent. He imagined himself to be in command of a large army engaged in protecting the country against...

While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE),...

Standard Bent Glass wanted to buy a machine for its factory that would produce cut glass. In March 1998, it started negotiations with Glassrobots Oy, a Finnish corporation. By February 1999,...

While you are attending a business conference in South America, someone approaches you and says, "A private property system might work well in your country, but it will never work in mine. There are...

Niles and Marsha adopted a little boy (a U.S. citizen). They paid $14,500 in 2015 for adoption-related expenses. The adoption was finalized in early 2016. Marsha received $3,000 of employer-provided...

Missouri Fidelity Union Trust Life Insurance Company stock was trading at $2.63 per share. Eight directors sold their shares for $7.00 per share, conditioned on the resignation of eleven of the...

The town of Sanford, Maine, decided to auction off a lot it owned. The town advertised that it would accept bids through the mail, up to a specified date. Arthur and Arline Chevalier mailed in a bid...

Bill James is being investigated for embezzling over $700,000 from ABC Capital Management, for whom Bill has worked for nearly 10 years. When coworkers noticed the new toys Bill was buying, they...

In 2003, Karen Pearson and Steve and Tara Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartinis RV Sales in Grass Valley, California. On September 29, Pearson, the Carlsons,...

Mary Ajayi and Wemi Alakija were tenants in an apartment complex managed for the landlord by Lloyd Management. Neighboring tenants complained on various occasions to Lloyd about repeated disturbances...

Laurie's contract to sell her tortilla chip business to Hudson contained a provision that she must continue to work at the business for five years. One year later, she quit. Hudson refused to pay her...

Jack is single and he made his first taxable gift of $1,000,000 in 2008. Jack made no further gifts until 2009, at which time he gave $1,750,000 to each of his three children and an additional...

William, Daniel, and Thomas are brothers who have decided to form an engineering firm. Although Thomas has an MBA degree and will function primarily as the firms financial expert, he has no formal...

Can Executive Aviation establish an artisans lien on the plane? Why or why not? Air Ruidoso, Ltd., operated a commuter airline and air charter service between Ruidoso, New Mexico, and airports in...

Together, EMI, Sony BMG Music Entertainment, Universal Music Group Recordings, Inc., and Warner Music Group Corp. produced, licensed, and distributed 80 percent of the digital music sold in the...

Regency Transportation, Inc., operates a freight business throughout the eastern United States. Regency maintains its corporate headquarters, four warehouses, and a maintenance facility and terminal...

Terry Holden's stepmother, Rosie, was diagnosed with amyotrophic lateral sclerosis (ALS), and Terry's wife, Susan, became Rosie's primary caregiver. Rosie executed a durable power of attorney...

Philip Schwachman owned a commercial building and leased space to Davis Radio Corp. for use as a retail store. In the same building, Schwachman leased other retail space to Pampered Pet, a dog...

Andrew, a resident of California, received an advertising circular in the U.S. mail announcing a new line of regional cookbooks distributed by the Every-Kind Cookbook Co. Andrew didnt want any books...

Lisa and Darrell Miller married in 1983 and had two children, Landon and Spencer. The Millers divorced in 2003 and entered into a joint custody implementation plan (JCIP). Under the JCIP, Darrell...

George Lawler and John Claydon were lawyers who maintained separate law practices in the same office space. They shared the expenses of that space, but never shared clients, did not commingle their...

Suppose that Firm Body brought an action against Brock claiming that he had breached the duty of loyalty by not disclosing his interest in Sunglow to the other directors. What theory might Brock use...

Ray, Linda, and Nancy form a partnership. Ray and Linda contribute property and cash. Nancy contributes only services. Linda dies, and the partnership is liquidated. After all debts are paid, the...

A taxpayer works at a corporation nearing the end of its fiscal year. The company has had a very successful (profitable) year and has decided to award the employee a cash bonus of 20% of annual...

Curtis R. Wilhelm owned beehives and kept the hives on property he owned. John Black, who operated a honeybee business, contracted to purchase some beehives from Wilhelm. Black employed Santos Flores...

Ms. JK recently made a gift to her 19-year-old daughter, Alison. Ms. JKs marginal income tax rate is 39.6 percent, and Alisons marginal income tax rate is 15 percent. In each of the following cases,...

Western Fire Truck, Inc., contracted with Emergency One, Inc. ( EO), to be its exclusive dealer in Colorado and Wyoming through December 2003. James Costello, a Western salesperson, was authorized to...

Bernard Koch was president of United Corporation, a closely held corporation. Koch, James Trent, and Henry Phillips made up the three-person board of directors. At a meeting of the board, Trent was...

The outstanding stock in Red, Blue, and Green Corporations, each of which has only one class of stock, is owned by the following unrelated individuals: a. Determine whether Red, Blue, and Green...

Blair underpaid her taxes by $250,000. A portion of the underpayment was shown to be attributable to Blair's negligence ($100,000). A court found that the rest of the deficiency constituted civil...

Cari Hawkins is a 50% partner in the calendar year Hawkins-Henry Partnership. On January 1, 2015, her basis in her partnership interest is $160,000. The partnership has no taxable income or loss for...

Daytona Corporation, a manufacturing corporation, acquires the following business assets in the current year: Furniture Plumbing fixtures Land Goodwill and a trademark acquired in the acquisition...

Tonya sells a passive activity in the current year for $150,000. Her adjusted basis in the activity is $50,000, and she uses the installment method of reporting the gain. The activity has suspended...