Lulu Enterprises sells a building with an adjusted basis of $40,000 for $85,000. Lulu paid $60,000 for the building five years ago. What is the treatment of the gain on the sale of the building if a....

Debbie owns office equipment with a basis of $300,000 and a holding period starting on May 10, 2004. Debbie exchanges the equipment for other office equipment owned by Doug on July 23, 2015. Dougs...

Pamela owns 100% of Sigma Corporations stock. She purchased her stock ten years ago, and her current basis for the stock is $300,000. On June 10, Pamela decided to liquidate Sigma. Sigmas balance...

On September 5, Wanda, a widow who occasionally teaches piano and organ in her home, purchased an electric organ from Murphys music store for $4,800, trading in her old organ for $1,200 and promising...

According to the text, when one Fortune 500 company changed its stance on fraud from the CEO is to be informed when someone is prosecuted for fraud to the CEO is to be informed when someone who...

1. According to the court, which of the two security interests in the land on which the manufactured home was situated had priority? Why? 2. Suppose that the manufactured home had been affixed to the...

On May 2, 1987, Hannah acquired residential real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On August 20, 2016, the building, which then had an...

British discovery practice differs from that in the United States. Most discovery in Britain concerns documents. The lawyers for the two sides, called solicitors, must deliver to the opposing side a...

Damons Lawn and Garden Supply, an accrual basis taxpayer, is the exclusive dealer for Tru-Cut lawn mowers. In 2011, Damons agrees to pay the Dash Corporation, the manufacturer of Tru-Cut, an...

Tom, an executive for a large corporation, enjoys the challenge of preparing his tax return. He is aggressive in preparing his return and searches through all the available publications to reduce his...

Amy Gargulo and Paula Frisken operated as a partnership Kiddies Korner, an infants' and children's clothing store. They operated the business very successfully for three years, with both Paula and...

In what ways did Dr. Sam Waksal rationalize his illegal and unethical actions?

A buyer purchased an engine to operate an irrigation pump. The buyer selected the engine from a large number that were standing on the floor of the sellers stockroom. A label on the engine stated...

In November 2011, Wehav Funds, a profitable engineering firm, signed a loan guarantee as a third party for No Certainty Company, a newly formed organization focused on pharmaceutical research and...

You work as the assistant to the controller of a small, privately owned company. Part of your job is to create weekly reports of the companys inventories. For the past several months, you have been...

Laurie Gladin owns land and a building that she has been using in her sole proprietorship. She is going to incorporate her sole proprietorship as a C corporation. Laurie must decide whether to...

On January 1, Julie, Kay, and Susan form a partnership. The contributions of the three individuals are listed below. Julie received a 30% partnership interest, Kay received a 60% partnership...

While crossing a public highway in the city, Joel was struck by a horse-drawn cart driven by Morisons agent. The agent was traveling between Burton Crescent Mews and Finchley on his employers...

Industrial Construction Co. wanted to raise money to construct a canning factory in Wisconsin. Various persons promised to subscribe the needed amount, which they agreed to pay when the construction...

Jim and Eric work for Audio Visual Services (AVS) at Cramer University in Casper, Wyoming. For expenses of $5, Jim and Eric used AVS facilities after hours to burn discs of Pearl Jams CD Vitology for...

Autolign Manufacturing Group, Inc., was a plastic injection molded that made parts for the auto industry. Because of a fi re at its plant, Autolign subcontracted its work to several other companies...

Jose, an unmarried taxpayer filing single with no dependents, has AGI of $200,000 and reports the following items in 2015: Taxable income. $160,000 Tax preferences 10,000 AMT adjustments related to...

Describe the sales cycle in offshore IT services. What differentiating factors should the Globant team focus on?

Christopher Bloom received a medical school scholarship created by the U.S. Department of Health and Human Services to increase the number of doctors serving rural areas. In return for this...

1. What are some of the symptoms of fraud in this case? 2. What questions would you ask yourself about fraud symptoms that might help you investigate this fraud? 3. Why would an undercover operation...

1. Why did Mayer lose this case? 2. According to the Court, under what circumstances might a plaintiff conceivably have an actionable claim involving a sports event gone wrong? 3. To some extent, the...

YOU BE THE JUDGE: WRITING PROBLEM United Technologies advertised a used Beechcraft Baron airplane for sale in an aviation journal. Attorney Thompson Comerford spoke with a United agent who described...

Emma Doyle, age 55, is employed as a corporate attorney. For calendar year 2016, she had AGI of $100,000 and paid the following medical expenses: Medical insurance premiums...

Jorges Appliance Corp. was a new retail seller of appliances in Sunrise City. Because of its innovative sales techniques and financing, Jorges caused the appliance department of No-Glow Department...

Kelly, Gwen, and Tuoi incorporated their accounting business and own all its outstanding stock. During the current year, the corporation's taxable income is $300,000 after deducting salaries of...

Fred, age 50, plans to retire when he reaches age 65. He is considering investing in either an IRA or a Roth IRA. He plans to contribute $6,000 per year until he retires. Fred expects his marginal...

Vianna Stibal owns and operates the Theta Healing Institute of Knowledge (THInK) in Idaho Falls, Idaho. Theta Healing is Stibal's "self discovered" healing method. In her book Go Up and Seek God,...

Lionel is negligently driving an automobile at excessive speed. Reginalds negligently driven car crosses the centerline of the highway and scrapes the side of Lionels car, damaging its fenders. As a...

PepsiCo has registered its PEPSI trademarks in the U.S. Patent and Trademark Office. PEPSI products are bottled and distributed in the United States by PepsiCo and by authorized bottlers pursuant to...

Guyan Machinery, a West Virginia manufacturing corporation, hired Albert Voorhees as a salesman and required him to sign a contract stating that if he left Guyan, he would not work for a competing...

In January, Roger Burke loaned his favorite nephew, JimmyWhite, his valuable Picasso painting. Knowing that Jimmy would celebrate his twenty-first birthday on May 15, Burke sent a letter to Jimmy on...

Formetal Engineering submitted to Presto a sample and specifications for precut polyurethane pads to be used in making air-conditioning units. Formetal paid for the goods as soon as they were...

Max Huber was the agency manager at Standard Insurances Los Angeles office. He was employed as an at-will employee, and his contract did not specify any fixed duration of guaranteed employment. Huber...

McGraw and Duffy have a contract that includes a binding arbitration clause. The clause provides for arbitration of any dispute arising out of the contract. The clause also provides that the...

Laura and Bruce Trethewey hired Basement Waterproofing Nationwide, Inc. (BWNI) to waterproof the walls in their basement for a fee of $2,500. BWNIs contract stated: BWNI will service any seepage in...

Park Corporation distributes its shoe manufacturing line of business to the newly created ShoeBiz Corporation in a transaction qualifying as a "Type D" spin-off reorganization. Before the...

William is employed by an accounting firm and uses his automobile in connection with his work. During the month of October 2014, he works at the office for 4 days and participates in the audit of a...

XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10....

Johnson and Wilson were the principal shareholders in XYZ Corporation, located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties,...

Narnia Investments, Ltd., filed a suit in a Texas state court against several defendants, including Harvestons Securities, Inc., a securities dealer. (Securities are documents evidencing the...

While gambling at Prairie Meadows Casino, Troy Blackford became angry and smashed a slot machine. He was banned from the premises. Despite the ban, he later gambled at the casino and won $ 9,387....

L & H Construction Company was a general contractor involved in the renovation of the Thomas Edison historic site in West Orange, New Jersey, for the National Park Service. L& H contracted with...

Blunt, Inc., a U.S. corporation, earned $600,000 in total taxable income, including $80,000 in foreign-source taxable income from its German branch's manufacturing operations and $30,000 in...

Mr. and Mrs. FB, a retired couple, decided to open a family restaurant. During March and April, they incurred the following expenses: Prepaid rent on commercial real estate ($2,100 per month from...

Deborah McCullough bought a new car from Bill Swad Chrysler, Inc. The car was protected by both a limited warranty and an extended warranty. McCullough immediately encountered problems with the...

Harrison, a mens clothing retailer located in Westport, Connecticut, ordered merchandise from Ninth Street East, Ltd., a Los Angelesbased clothing manufacturer. Ninth Street delivered the merchandise...

Abra Swan is 30 years old and single. She is employed as a middle-level manager with a national Canadian company. After living and working for five years in Regina, Saskatchewan, she was transferred...

Susan Jungclaus Peterson was a twenty-one-year-old student at Moorhead State University who had lived most of her life on her family farm in Minnesota. Though Susan was a deans list student during...

Paula instructed Alvin, her agent, to purchase a quantity of hides. Alvin ordered the hides from Ted in his own (Alvins) name and delivered the hides to Paula. Ted, learning later that Paula was the...

Would a court be likely to consider Holcomb a merchant under the UCC? Why or why not?

Donald dies in 2014, and under his will, a trust is created in the amount of $6 million with the following provisions: life estate to Cindy (Donalds wife) and remainder to their children. His will...

Mr. Papp paid the following professional fees: To CPA for preparation of Form 1040 .. $4,200 To CPA for preparation of federal gift tax return .. 900 To attorney for drafting Mr. Papps will .. 7,800...

In Raffles v. Wichelhaus, 2 Hurl. & C. 906, 159 Eng. Rep. 375 (Ex. 1864), the plaintiff sold the defendants 125 bales of cotton to arrive ex Peerless from Bombay, that is, by way of the ship Peerless...

According to the conclusion to Chapter 4, . . . property rights are part of the law that makes owners internalize the social costs and benefits of alternative uses of the goods that they own. Torts...

Devaluate Dave Santollis entrepreneurial thinking and leadership at Faxtech and at TTI.

Burger Baby restaurants engaged Air Advertising to fly an advertisement above the Connecticut beaches. The advertisement offered $1,000 to any person who could swim from the Connecticut beaches to...

What is the rule set forth by that provision? Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp to issue checks to the nursing homes employees for...

Monique is a self-employed manufacturers representative (i.e., an independent contractor) who solicits business for numerous clients and receives a commission based on sales. She incurs the following...

Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $26,000 with an adjusted basis of $15,500 for $17,000. Later in the year, Lena sold another piece of...

1. Are any vendors used that are not approved vendors? If so, list the vendor names and the employees who used these vendors. What follow-up steps should be taken on these vendors? 2. Were any...

To: [Your name] From: Supervising Attorney Re: Kells v. Simns; implied warranty of fitness for a particular purpose Our client, Mr. MerrilSimns, is being sued by Tom Kells for breach of an implied...

Using the legend provided, classify each of the following citations as to the court: a. 388 F.2d 420 (CA7, 1968). b. 79 T.C. 7 (1982). c. 54 S.Ct. 8 (USSC, 1933). d. 3 B.T.A. 1042 (1926). e. T.C.Memo...

Five years ago, Cora incorporated Gold, Inc., by contributing $80,000 and receiving 100% of the Gold common stock. Gold, Inc. is engaged in a retail business. Cora is single. Gold experienced...

Tom Speeder is a new client. From reviewing his client questionnaire, you were able to gather the following facts. He is 50 years old and was recently hired as a middle-level manager with a car...

EndLand Company reports the following results for the current year: Gross profit from sales ................ $350,000 Dividends received (less than 20% ownership) ........ 40,000 Long-term capital...

Is Davidson Masonry member managed or manager managed? Marilyn Rowe, decided to submit a bid for a decorative concrete project that incorporated artistic metalwork. They contacted Shana Lafayette, a...

An excerpt from the Fourth Amendment reads: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and...

Iona wrote her will. The following year, she wrote another will that expressly revoked the earlier will. Later, while cleaning house, she came across the second will. She mistakenly thought that it...

On June 5, 2015, Dan purchased and placed in service a 7-year class asset costing $550,000. Determine the maximum deductions that Dan can claim with respect to this asset in 2015 and 2016.

When Brunos basis in his LLC interest is $150,000, he receives cash of $55,000, a proportionate share of inventory, and land in a distribution that liquidates both the LLC and his entire LLC...

In 1999, Andreas Halvorsen, David Ott, and Brian Olson formed a hedge fund, Viking Global Investors LLC. The LLC's written agreement provided that the three founders would operate Viking, and divide...

Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at the same university. She...

Beta Corporation reports the following results for the current year: Gross income from operations . $180,000 Dividends from less-than-20%-owned domestic corporations . 100,000 Operating expenses .....

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest, Mickalya is contributing a building with a...

Donald was killed in an accident while he was on the job in 2016. Darlene, Donald's wife, received several payments as a result of Donald's death. What is Darlene's gross income from the items listed...

James A. and Ella R. Polk, ages 70 and 65, are retired physicians who live at 13319 Taylorcrest Street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and Olivia...

Gerald Adams worked as a cook for Uno Restaurants, Inc., at Warwick Pizzeria Uno Restaurant & Bar in Warwick, Rhode Island. One night, shortly after Adamss shift began, he noticed that the kitchen...

John was recently convicted by a jury of committing fraud against his employer. After the trial, it was revealed that some key evidence against John used in trial was obtained through his employers...

Oasis Waterpark, located in Palm Springs, California, sought out Hydrotech Systems, Inc., a New York corporation, to design and construct a surfing pool. Hydrotech replied that it could design the...

Rust Company is a real estate construction business with average annual gross receipts of $3 million. Rust uses the completed contract method on a particular contract that requires 16 months to...

Cable Corporation, which operates a fleet of motorized trolley cars in a resort city, is undergoing a complete liquidation. John, who owns 80% of the Cable stock, plans to continue the business in...

Hawkins slipped and fell on a puddle of water just inside the automatic door to the H. E. Butt Grocery Companys store. The water had been tracked into the store by customers and blown through the...

Under what circumstances would Aimer have been allowed to require an employee to take a polygraph test? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales...

Through a "Type C" reorganization, Springer Corporation was merged into Spaniel Corporation last year. Springer shareholders received 40% of the Spaniel stock in exchange for all of their Springer...

Ms. P, age 51, plans to save $5,000 this year toward her retirement. She is considering three different investments. First, she could make a nondeductible contribution to a traditional IRA earning 5...

Bobby Murray Chevrolet, Inc., submitted a bid to the Alamance County Board of Education to supply 1,200 school bus chassis to the district. Bobby Murray was awarded the contract and contracted with...

Dial Corp. implemented a work tolerance test, which all new employees were required to pass to obtain employment in its Armour Star brand sausage-making department. Of the applicants who passed the...

Ramrod, Inc., sells a warehouse for $350,000. It purchased the warehouse 10 years ago for $250,000 and had taken $75,000 in depreciation on the building to the date of sale. Identify the tax issue(s)...

Bennina Industries is non-union, but wants to stay that way. In an effort to do so, it wants to be proactive about employee concerns. Bennina tells some of the more popular employees it thinks they...

Determine the missing data in these court decisions and rulings. a. Higgens v. Comm., 312 U.S._ _ _ __ (1941). b. Talen v. U.S., 355 F.Supp.2d 22 (D.Ct. D.C., _ _ _ __ _). c. Rev.Rul. 2008-18,...

Edwin sells a sofa to Jack for $800. Edwin and Jack both know that the sofa is in Edwins warehouse, located approximately ten miles from Jacks home. The contract does not specify the place of...

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...

Terri, age 16, is claimed as a dependent on her parents' 2014 return. During the year, Terri earned $5,000 in interest income and $3,000 from part-time jobs. a. What is Terri's taxable income? b. How...

Kubota Tractor Corp. makes farm, industrial, and outdoor equipment. Its franchise contracts allow Kubota to enter into dealership agreements with others at any location. Kejzar Motors, Inc., is a...

You want to lease your automobile to a friend for the summer but do not want to pay a lawyer to draw up the lease. Joanna, a neighbor, is in law school. She is not licensed to practice law. She...