BSH Home Appliances Corp. makes appliances under the Bosch, Siemens, Thermador, and Gaggenau brands. To make and market the Pro 27 Stainless Steel Range, a restaurant-quality range for home use, BSH...

Hacienda Farms, Ltd., was organized as a limited partnership with Ricardo de Escamilla as the general partner and James L. Russell and H. W. Andrews as limited partners. The partnership raised...

DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment .......... 2/17 ......... $10,000 Furniture ......................

Harun Fountain, a minor, was shot in the back of the head at point blank range by a playmate. Fountain required extensive lifesaving medical services from a variety of medical service providers,...

CEO was convinced by his employee, M. Ploy, that a coworker, A. Cused, had been stealing money from the company. At lunch that day in the company cafeteria, CEO discharges Cused from her employment,...

Employee says she was forced to quit her job because of her status as a mother of young children. She claimed that her female supervisor created a hostile work environment that violated Title VII....

Rick and Maria had been married for 20 years before their divorce in the current year. At that time, they made the usual property settlement: Maria got the house, the van, and the cat; Rick got the...

Suppose you are an employee of Toys4u.com and incurred $8,000 of company-related meals and entertainment (M&E) during the year. The company is evaluating whether to reimburse you directly or to pay...

Should ICANNs actions be viewed as a horizontal or a vertical restraint of trade? The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit entity organizing Internet domain...

Harold works for the Zanten Corporation. Ken is self-employed. Zanten pays all of Harolds medical insurance premiums, whereas Ken purchases medical insurance from his insurance agent. Explain how the...

On January 1, 2014, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss...

During the current year, Melissa reports AGI of $200,000. As part of some estate planning, she donates $30,000 to her alma mater, Middle State University, and $65,000 to a private nonoperating...

Mary and Gary are partners in the MG Partnership. Mary owns a 40% capital, profits, and loss interest. Gary owns the remaining interest. Both materially participate in partnership activities. At the...

Under the UCC, which party, Golden Years or Star Bank, must bear the loss in this situation? Why? Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp...

List three provisions in a contract that would be material, and three that would not be.

Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related...

If the dispute is judged under the rule of reason, what might be ICANNs defense for having a standardized set of registry services that must be used? The Internet Corporation for Assigned Names and...

A bank managers responsibility was making loans. Auditors discovered that several loans he made over a five-year period had not been repaid. A fraud investigation revealed that the manager had been...

Mohammad Hashmi, a citizen of Pakistan, entered the United States in 2002 on a student visa. Two years later, when he applied for a job at CompuCredit, he completed an I-9 form and checked the box to...

Investor B has $100,000 in an investment paying 9 percent taxable interest per annum. Each year B incurs $825 of expenses relating to this investment. Compute Bs annual net cash flow assuming the...

On March 15, 2016, Helen purchased and placed in service a new Escalade. The purchase price was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. Calculate...

How do Article 2 and Article 2A of the UCC differ? What types of transactions does each article cover?

When Magdalenas outside basis is $58,000, she receives a liquidating distribution of $15,000 cash and a proportionate share of inventory having a partnership basis of $20,000 and a fair market value...

Latoya, a college professor, takes a nine-month leave of absence from her employment at a college in Ohio and accepts a visiting professorship (temporary assignment) at a college in Texas. Latoya...

Now suppose that Montieth had taken out a pencil, written 10 percent for life on the back of a register receipt, and handed it to Odin. Would this satisfy the Statute of Frauds? Why or why not?...

Go to Extended Case 29.1, Citizens National Bank of Jessamine County v. Washington Mutual Bank, 309 S.W.3d 792 (2010), on pages 567568. Read the excerpt and answer the following questions. (a) Issue:...

BZD, a calendar year corporation, made the following year-end accruals for 2015 financial statement purposes. In each case, determine how much of the accrued expense is deductible on BZDs 2015...

Ted decides to incorporate his medical practice. He uses the cash method of accounting. On the date of incorporation, the practice reports the following balance sheet: All the current liabilities...

Bronze Corporation reports the following data for the current year: Bronze is not a small corporation exempt from the AMT and has no AMT adjustment for the U.S. production activities deduction. The...

Santa Monica adopted a rent control ordinance authorizing the Rent Control Board to set the amount of rents that could be charged. At a hearing before it, the board determined that McHugh was...

Fraud investigators found that 70 percent of the nearly $160 million in sales booked by an Asian subsidiary of a European company between September 2006 and June 2007 were fictitious. In an effort to...

Martha M. Carr suffered from schizophrenia and depression. Schizophrenia is a psychotic disorder that is characterized by disturbances in perception, inferential thinking, delusions, hallucinations,...

Four GRRLs Partnership is owned by four girlfriends. Lacy holds a 40% interest; each of the others owns 20%. Lacy sells investment property to the partnership for its fair market value of $200,000...

Anthony makes a contract to sell a rare painting to Laura for $100,000. The written contract specifies that if Anthony should fail to perform the contract, he will pay Laura $5,000 as liquidated...

1. One of the concerns raised by Carlisle was that if attorneys could be held liable for their reasonable misinterpretations of the FDCPAs requirements, there would be a flood of lawsuits against...

The Hosta Trust reports gross rent income of $72,000, expenses attributable to the rents of $55,000, and tax-exempt interest from state bonds of $18,000. Under the trust agreement, the trustee is to...

BPK Inc. and OPK Inc. are owned by the same family. BPKs marginal tax rate is 25 percent, and OPKs marginal tax rate is 40 percent. BPK is about to incur a $72,000 deductible expense that would...

A 70 year old recently retired engineer is discussing with you, over coffee, whether to gift $ 500,000 to-day to his only $500,000 today to his only daughter or invest the $ 500,000 and bequeath the...

In its first tax year, the Vasquez Estate generated $50,000 of taxable interest income and $30,000 of tax-exempt interest income. It paid fiduciary fees of $8,000. The estate is subject to a 35%...

Using either CHECKPOINT or INTELLICONNECT refer to the Holden Fuel Oil Company, RIA T.C. Memo 72,045 (T.C. Memo 1972-45), 31 TCM 184. a. In which year was the case decided? b. What controversy was...

Carlos inherits 100 shares of Allied corporation stock from his father. The stock cost his father $8,000 and had a $25,000 FMV on the date of his father's date of death in 2015. The alternative...

1. Review the UCC provisions that apply to the topics discussed in Chapters 19 through 22. Discuss fully how various UCC provisions, excluding the provisions discussed above, reflect social values...

Castle and Dave formed an S corporation that is owned as follows: Castle 75% and Dave 25%. The corporation distributes an asset to each owner. The corporation has a basis of $45,000 for each asset....

Government G levies an income tax with the following rate structure. Percentage RateBracket 6% .Income from 0 to $30,000 10 .Income from $30,001 to $70,000 20 .Income from $70,001 to $200,000 28...

Baldwin Corporation made a public offering of $25 million of convertible debentures and registered the offering with the SEC. The registration statement contained financial statements certified by...

As the lead accountant for a small company, you notice that inventory purchases from a certain vendor have increased dramatically over the past few months, while purchases from all other vendors have...

In 1909, the state legislature of Illinois enacted a statute called the Womans Ten Hour Law. The law prohibited women who were employed in factories and other manufacturing facilities from working...

Hank is a single individual who possesses a life insurance policy worth $300,000 that will pay his two children a total of $800,000 upon his death. This year Hank transferred the policy and all...

Ann and Bill were on the list of a local adoption agency for several years seeking to adopt a child. Finally, in 2015, good news comes their way and an adoption seems imminent. They pay qualified...

Don Gray, who ran an aircraft paint shop, was hired to repaint an airplane owned by Bob Moreland. When Moreland left the plane for the paint job, a bailment was created. The price agreed on was...

Adrian is a salesperson who represents several wholesale companies. On January 2, 2011, she receives by mail a commission check from Ace Distributors in the amount of $10,000 and dated December 30,...

Cathy Coed is a full-time senior student at Big Research University (BRU). Cathy is considered by most as a brilliant student and has been given a $ 35,000-per-year scholarship. In the current year,...

At the beginning of the current (non-leap) year, Charles owns all of Pearl Corporations outstanding stock. His basis in the stock is $80,000. On July 1, he sells all his stock to Donald for $125,000....

Anita and Barry were negotiating, and Anitas attorney prepared a long and carefully drawn contract, which was given to Barry for examination. Five days later and prior to its execution, Barrys eyes...

On February 5, Devon entered into a written agreement with Gordon whereby Gordon agreed to drill a well on Devons property for the sum of $5,000 and to complete the well on or before April 15. Before...

Sanders agreed in writing to write, direct, and produce a motion picture on the subject of lithography for the Tamarind Lithography Workshop. After the completion of this film, Four Stones for...

In 2001, Gauldin and Corn entered into a partnership for the purpose of raising cattle and hogs. The two men were to share equally all costs, labor, losses, and profits. The business was started on...

Oneal was a teacher employed by the Colton Consolidated School District. Because of a diabetic condition, his eyesight deteriorated so much that he offered to resign if he would be given pay for a...

Larson entered into a Special Manager Incentive Agreement (SMIA) with Tandy Corp. He agreed to manage a Radio Shack store for compensation equal to one-half of the adjusted gross profit of the store...

Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element(s) might be lacking? Chelene had been a caregiver for Martas eighty-year-old mother, Janis, for nine years....

For each of the following assets, determine whether it is personal property, real property, intangible property, or personal use property: a. Woodrow spent $5,380 on trees and shrubs for use in his...

Arnold owned a Pontiac dealership and wanted to expand by obtaining a Buick outlet. He spoke with Patricia Roberts and other Buick executives on several occasions. He now claims that those...

From the United Insurance Co., Rebecca Foster obtained a policy insuring the life of Lucille McClurkin and naming herself as beneficiary. McClurkin did not live with Foster, and Foster did not inform...

A Wall Street bond trader turned on the television one day and saw a news report accusing him of committing a large securities scam. This trader learned that his employer had accused him of creating...

Lisa and Darrell Miller had a son, Landon. When the Millers divorced, they entered into a Joint Plan (JP). Under the JP, Darrell agreed to begin setting funds aside for Landon to attend college....

Your client, White Corporation, has done well since its formation 20 years ago. This year, it recognized a $50 million capital gain from the sale of a subsidiary. White's CEO has contacted you to...

Find Rev. Rul. 72-542, 1972-2 CB 37, and answer the following questions. The purpose of these questions is to enhance your skills in reading and interpreting authorities that you locate while doing...

Kobe transfers $500,000 in cash to newly formed Bryant Corporation for 100% of Bryants stock. In the first year of operations, Bryants taxable income before any payments to Kobe is $120,000. What...

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business: Asset____________ Sales Price ________Cost...

Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...

Is the principal goal of tax planning to absolutely minimize the amount of taxes that a taxpayer must pay?

Calvin uses fraud to induce Maria to promise to pay money in return for goods he has delivered to her. Has a contract been formed? If so, what kind? What are the rights of Calvin and Maria?

A few years ago, there was a large oil refining company (based in New York) whose top executive was convicted of financial statement fraud. One of the issues in the case involved the way the company...

(True and False) 1. Assets most often improperly capitalized are fixed assets such as property or equipment. 2. Financial statement fraud involving footnote disclosures can be either frauds of...

Spence, Inc., a calendar year S corporation, generates an ordinary loss of $110,000 and makes a distribution of $140,000 to its sole shareholder, Storm Nelson. Nelson's stock basis at the beginning...

Find the annual report for some publicly listed high-technology company that has losses. Refer to the tax footnote in the report to extract the NOL carryforward. Assume an after-tax discount rate of...

Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income after tax on its financial statements prepared in accordance with GAAP. The corporations books and...

Port Corporation wants to change its tax year from a calendar year to a fiscal year ending June 30. Port is a C corporation owned by 100 shareholders, none of whom own more than 5% of the stock. Can...

Sean is admitted to the calender year XYZ Partnership on December 1 of the current year in return for his services managing the partnerships business during the year. The partnership reports ordinary...

On November 19, Hoover Motor Express Company sent to Clements Paper Company a written offer to purchase certain real estate. Sometime in December, Clements authorized Williams to accept. Williams,...

Classify the following laws as substantive or procedural: a. A law that requires public schools to hold a hearing before a student is expelled b. A law that establishes a maximum interest rate for...

Under the UCC, does Egan have a right to reject the fourth shipment? Why or why not? GFI, Inc., a Hong Kong company, makes audio decoder chips, one of the essential components used in the manufacture...

Dr. Doyle E. Campbell, an ophthalmologist, established his practice in southern Ohio in 1971. Many of Dr. Campbells patients are elderly people who qualify for federal Medicare benefits and state...

Bob and Anna are in the 39.6% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owned...

Rachel Schutz is a high school English teacher. In her spare time, she likes to make her own body lotion, lip-gloss, and bath and shower gel. She uses the bath products herself and gives them to her...

Peter, an undercover police agent, was trying to locate a laboratory where it was believed that methamphetamine, or speeda controlled substancewas being manufactured illegally. Peter went to Marys...

Copenhaver, the owner of a laundry business, contracted with Berryman, the owner of a large apartment complex, to allow Copenhaver to own and operate the laundry facilities within the apartment...

Edwards received unsolicited faxes from Direct Access in violation of the Federal Telephone Consumer Protection Act, which makes it illegal to send unsolicited faxes. Edwards, a Nevada resident, sued...

The compensation committee of a large public corporation engages you to help design a tax efficient compensation plan for the current chief executive officer (CEO). In a preliminary interview with...

Rhonda owns 50% of the stock of Peach Corporation. She and the other 50% shareholder, Rachel, have decided that additional contributions of capital are needed if Peach is to remain successful in its...

Company B and Firm W exchanged the following business real estate: a. If Bs adjusted basis in Blackacre was $240,000, compute Bs realized gain, recognized gain, and basis in Whiteacre. b. If Ws...

Mike Webb, married to Nancy Webb, is employed by a large pharmaceutical company and earns a salary. In addition, Mike is an entrepreneur and has two small businesses on the side, both of which...

East Mill Associates (EMA) was developing residential units in East Brunswick, New Jersey, within the service area of the East Brunswick Sewerage Authority (EBSA). The sewer system required an...

Karl self-publishes a cookbook titled Hole Foods, in which he sets out recipes for donuts, Bundt cakes, tortellini, and other foods with holes. To publicize the book, Karl designs the Web site...

THE ETHICAL DIMENSION In recognizing quasi contracts, does the law try to correct for unethical behavior? Why or why not? THE ECONOMIC DIMENSION Could the Copenhavers have successfully argued that by...

Meredith, who is single, would like to contribute $5,500 to her Roth IRA. What is the maximum amount that Meredith can contribute if her AGI is $118,000?

Wilcox was chief executive officer, chairman of the board of directors, and owner of 60 percent of the shares of Sterling Corporation. When the market price of Sterlings shares was $22 per share,...

Assume that Wrigley Juice is owned by Calvin as a sole proprietorship. Explain the effect of Wrigleys results on Calvins tax return. Wrigley Juice has the following income, expense, and loss items...

Through an acquisitive "Type D" reorganization, Border, Inc., is merged into Collie Corporation on September 2 of the current calendar tax year. The Federal long-term tax-exempt rate for September is...

Perry Bell paid $6,438 of state and local property tax this year. Compute the after-tax cost of these payments assuming: a. Perry doesnt itemize deductions on his Form 1040. b. Perry itemizes...