McDonalds has an undeviating policy of retaining absolute control over who receives new franchises. McDonalds granted to Copeland a franchise in Omaha, Nebraska. In a separate letter, it also granted...

Henry and Wilma, an elderly immigrant couple, agreed to purchase from Brown a refrigerator with fair market value of $450 for twenty-five monthly installments of $60 per month. Henry and Wilma now...

Ms. T. an unmarried individual, has the following income items: Schedule C net profit ..$31,900 NOL carry forward deduction . (9,190) Interest income .. 725 Ms. Ts self-employment tax was $4,507. She...

On June 2, 2015, a tornado destroyed the building in which FF operated a fast-food franchise. FFs adjusted basis in the building was $214,700. In each of the following cases, determine FFs recognized...

Omega Corporation reports the following results for the current year: Gross profits on sales $120,000 Dividends from less-than-20%-owned domestic corporations . 40,000 Operating expenses 100,000...

Julie paid a day care center to watch her two-year old son this year while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie...

Adams, who reads with difficulty, arranged to borrow $5,000 from Bell. Bell prepared a note, which Adams read laboriously. As Adams was about to sign it, Bell diverted Adamss attention and...

Martina is single and has two children in college. Matthew is a sophomore and Christine is in her fifth year of college. Martina pays $3,600 in tuition and fees for Matthew, $700 for textbooks, and...

1. What duties did Hassam owe Rahemtulla? 2. Does it matter that Rahemtulla made foolish decisions when he trusted his friend? 3. What is the potential conflict when Hassam creates a partnership to...

The local residents of Greene County, a small, rural, mostly minority community, have recently learned that a major oil company is putting a refinery in the county. The residents ask for an...

At the time of his marriage to Ann, Robert owned several parcels of real estate in joint tenancy with his brother, Sam. During his marriage, Robert purchased a house and put the title in his name and...

A guest in a motel opened the bedroom window at night and went to sleep. During the night, a prowler pried open the screen, entered the room, and stole property of the guest. The guest sued the...

What facts would the court consider the most important in determining whether Scott was an employee or an independent contractor? James Blatt hired Marilyn Scott to sell insurance for the...

The long run. Some commentators thought that the Coase Theorem might be true in the short run but not in the long run. In the example of the farmer and the rancher, changing the use of fields takes...

Neal Petersons entire family skied, and Peterson started skiing at the age of two. In 2000, at the age of eleven, Peterson was in his fourth year as a member of a ski race team. After a race one...

Ronald Bleakney, an officer at Natural Microsystems Corp. (NMC), a Section 12 corporation, directed NMC sales in North America, South America, and Europe. In November 1998, Bleakney sold more than...

Mr. G, a single taxpayer, has $15,700 AGI. Compute his taxable income in each of the following cases: a. Mr. Gs AGI consists entirely of interest income. He is 19 years old and claimed as a dependent...

Jays parents granted Jay title to their home. In return, Jay entered into an agreement with his parents stating that the coveyancing agreement was created "to protect and preserve an interest in the...

Now assume that a court finds that the new rule is merely interpretive. What effect would this determination have on whether the SEC had to follow the APAs rulemaking procedures? Assume that the...

The Holzmans signed an exclusive listing agreement with the Blum real estate brokerage firm. The contract provided that the Holzmans had an obligation to pay a commission if they enter into a written...

The Grays live in Clay County, which is adjacent to Jackson County. Although the retail stores in both counties are comparable, the Grays usually drive a few extra miles to shop in Jackson County. As...

Beaver Corporation owns a parcel of land with a fair market value (FMV) of $75,000 and a basis of $40,000. Beaver exchanges the land for a building with an FMV of $65,000. The corporation also...

Assume that Wrigley Juice is an S corporation owned equally by Henry, Iris, and Jasmine. Prepare a memo explaining the effect of Wrigleys results on Henrys, Iriss, and Jasmines tax returns. Wrigley...

In March 2014, Grackle, Inc., acquired used equipment for its business at a cost of $300,000. The equipment is five-year class property for regular income tax purposes and for AMT purposes. Grackle...

Suzanne and Bob form the SB General Partnership as equal partners. They make the following contributions: The SB Partnership assumes the $80,000 recourse mortgage on the building that Bob...

The Pyro Corporation has outstanding twenty thousand shares of common stock, of which nineteen thousand are owned by Peter B. Arson, five hundred shares are owned by Elizabeth Arson, his wife, and...

Taxpayer A purchased $ 100,000 of corporate bonds yielding 12.5% per annum; the interest income from these bonds is taxed at a rate of 28%. Taxpayer B purchased $ 100,000 of municipal bonds yielding...

Cole Energy Development Company (Cole Energy) wanted to lease a gas compressor for use in its business of pumping and selling natural gas and began negotiating with the Ingersoll Rand Company...

Las Vegas Corporation is in the business of developing software used exclusively by multinational corporations. Among its assets are innovative soft ware, valuable trademarks, outstanding corporate...

The buyer of real estate made a down payment. The contract stated that the buyer would be liable for damages in an amount equal to the down payment if the buyer broke the contract. The buyer refused...

(a) Should you fire Bhandari to reduce operating expenses? (b) If Bhandari is terminated, on what basis could she sue the company? Would she prevail? (c) How could you have structured the...

Multiply Choice 1. The United States Constitution is among the finest legal accomplishments in the history of the world. Which of the following influenced Ben Franklin, Thomas Jefferson, and the rest...

Why might one group of investors prefer the corporate form, whereas another group of investors prefers the partnership form?

Assume the same facts as in Problem 41 with the following modifications. The bonds were issued by the Houston (TX) Independent School District. The dividend record date was September 3 (not September...

Joey parked his car on the top of a hill when he went to watch the X Games in San Diego. He did not properly set his brakes or curb the wheels when he parked the car. When he returned from the games,...

Correct and complete the following cites: a. R.R. 95-20, 1 CB. 163 b. Rev. Ruling 91-14, 1991 CB 18 c. Rev. Rul. 72-604

Harold McClellan sold ice-making machinery to Bobbie Cantrells brother for $200,000 to be paid in installment payments. McClellan took a security interest in the ice machine but did not perfect it by...

Enron founder and former Chairman and CEO Kenneth Lay was indicted in July 2004 for his role in the Enron scandals. The SECs complaint against Lay, ironically, seemed to corroborate Lays protests...

Facebook, Inc. filed a complaint in the U. S. district court against numerous defendants alleging that the named defendants engaged in trademark infringement, cybersquatting, and false designation of...

1. Fletcher-Harlee Corp., a general contractor, solicited bids from subcontractors on various aspects of a building project for which it intended to compete. In response, Pote Concrete Contractors...

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6789. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112....

Helvey brought suit against the Wabash County REMC (REMC) for breach of implied and express warranties. He alleged that REMC furnished electricity in excess of 135 volts to Helveys home, damaging his...

Estrada Hermanos, Inc., a corporation incorporated and doing business in Florida, decides to sell $1 million worth of its common stock to the public. The stock will be sold only within the state of...

What were Jim Bakkers pressures, opportunities, and rationalizations to commit fraud?

Before deciding what remedies are available under Article 2 of the UCC, one must first determine whether the transaction involved the sale of goods. Consider the following cases. a. Wachter, a...

After Maria and Tatsuo are divorced, their 2 minor children continue to live with Maria. Pursuant to their divorce decree, Tatsuo pays Maria $1,000 per month in child support and $1,800 per month in...

BlueCo, a domestic corporation, incorporates GreenCo, a new wholly owned entity in Germany. Under both German and U.S. legal principles, this entity is a corporation. BlueCo faces a 35% U.S. tax...

Broward Corp. owns 1,500 shares of Silver Fox Corporation common stock. Broward Corp. purchased the 1,500 shares on April 17, 2009, for $20,000. On December 8, 2014, Broward sells 750 shares for...

Raj Kothare funded an irrevocable simple trust in May of last year. The trust benefits Rajs son for life and grandson upon the sons death. One of the assets he transferred to the trust was Webbco...

In the 1990s, DuCoa, LP, made choline chloride, a B-complex vitamin essential for the growth and development of animals. The U.S. market for choline chloride was divided into thirds among DuCoa, Bio...

Roscoe erects a home-size golf driving range in his backyard, complete with a 10 X10 foot mesh screen to prevent the balls from going too far. One day while practicing his swing, one of the balls...

Louise Kalbe maintained a checking account at the Pulaski State Bank (Bank) in Wisconsin. Kalbe made out a check for $ 7,260, payable in cash. Thereafter, she misplaced it but did not report the...

Richie is a wealthy rancher in Texas. He operates his ranch through a grantor trust set up by his grandparents. Richie does not like to get his hands dirty, so he hires a professional management...

Wilkins, a resident of and licensed by the State of Texas as a certified public accountant (CPA), rendered service in his professional capacity in Louisiana to Coverton Cosmetics Company. He was not...

On January 1, 2011, Davis and Hershey owned Blackacre as tenants in common. On July 1, 2011, Davis made a written contract to sell Blackacre to Grigg for $25,000. Pursuant to this contract, Grigg...

What method was most likely used to negotiate the instruments described here? The Brown family owns several companies, including the J. H. Stevedoring Company and Penn Warehousing and Distribution,...

Daniels and Julian were employed by the Marriott Hotel in New Orleans and were close personal friends. One day after work, Daniels and Julian went to Werleins music store to open a credit account....

Research the term managed trade. Do you agree or disagree that trade can be managed? Give examples from the text, and from your reading, of how governments manage trade. Can you cite successful or...

Borges Meat Marketing, Inc., a Nebraska corporation, wishes to establish a network of gourmet butcher shops in India. It has a well-developed introductory advertising campaign that it has employed in...

Multiply Choice 1. Master Mfg., Inc. contracted with Accur Computer Repair Corp. to maintain Masters computer system. Masters manufacturing process depends on its computer system operating properly...

Perform assignment 7 using the law from your state. Assignment 7 In the following exercise, the assignment is to prepare a trial court brief. The assignment contains the memo from the supervising...

Explain why an individuals combined standard deduction and exemption amount can be considered a bracket of income taxed at a zero rate.

The Secretary of Commerce (Secretary) published notice in the Federal Register inviting comments regarding flammability standards for mattresses. Statistical data were compiled, consultant studies...

Keller, a professor of legal studies at Rhodes University, is a diligent instructor. Late one night while reading a newly published, copyrighted treatise of 1,800 pages written by Gilbert, he came...

The Federal Government provides disaster insurance that helps people to build vacation homes in places subject to flooding, such as sand dunes. Assume the government wants to protect the environment...

Under Internal Revenue Service (IRS) regulations, federal taxes on gasoline and diesel fuel do not apply to sales of fuels for marine use. Marinas that sell tax-free fuel must obtain a "637...

Sarah is the sole owner of Bluegrass Corporation. The basis and value of her stock investment in Bluegrass are approximately $100,000. In addition, she manages Bluegrass's operations on a full-time...

Oahe Enterprises was formed by the efforts of Emmick, who acted as a promoter and contributed shares of Colonial Manors, Inc. (CM), stock in exchange for stock in Oahe. The CM stock had been valued...

Wellness, Inc., a 501(c)(3) organization, makes lobbying expenditures of $340,000 this year. Exempt purpose expenditures were $600,000 for the first six months of the year and $950,000 for the last...

Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in the 39.6 percent tax bracket. Early in the year, Jane hired Ben as a paralegal and paid him a $33,000...

In which of the following unrelated exchanges is the Sec. 351 control requirement met? If the transaction does not meet the Sec. 351 requirements, suggest ways in which the transaction can be...

Sue is 30 years old and is president and a 51% shareholder of C Corporation. She informs you that C Corporation has ten shareholders, all unrelated. Other than herself, no shareholder owns more than...

Jim is single and has three dependent children. Calculate his deductible total personal and dependency exemptions under the following independent conditions: a. Jim has AGI of $150,000. b. Jim has...

Steven Soderbergh is the Academy Awardwinning director of Erin Brockovich, Traffic, and many other films. CleanFlicks, LLC, filed a suit in a federal district court against Soderbergh, fifteen other...

On May 1, by telephone, Yu offers to hire Benson to perform personal services. On May 5, Benson returns Yus call and accepts the offer. Discuss fully whether this contract falls under the Statute of...

Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2...

Multiple Choice Question 1. More American law comes from one country than from any other. Which country? A. France B. England C. Germany D. Spain E. Canada 2. Under the United States Constitution,...

In order to preserve the opportunity for growth and a possible franchise, what legal filings should Newmarks entity undertake? APC, Inc., is a venture capital firm that invests in new businesses to...

Sams Electronics Universe has discovered and investigated a kickback fraud perpetrated by its purchasing agent. The fraud lasted eight months and cost the company $2 million in excess inventory...

Have nonrevenue factors had any impact upon the development of our taxation system? If so, how?

On what basis might the federal district court in Illinois exercise jurisdiction in this case? Stan Garner resides in Illinois and promotes boxing matches for SuperSports, Inc., an Illinois...

Mamdouh El-Hakem was employed by BJY, Inc., for more than a year. His manager repeatedly called Mamdouh, an Arabic employee, Manny or Hank, instead of his given name. His manager explained that he...

Gary is an internal auditor for Bodine Information Systems (BIF). In 2008, BIF opened a large production plant in Las Vegas, Nevada. Subsequently, Gary has had to spend several months each year at...

Using this information, calculate the amount of income from unknown sources, if any, using the net worth method. Homegrown Gardens, LLP, is a $10 million nursery and garden retailer in Florida....

Introduction Home Safety, Inc.s management has been trying for months to acquire one of its largest competitors in the home security industryLock-It-Up Company. Before agreeing to the acquisition,...

Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reports no...

Irving Levin and Harold Lipton owned the San Diego Clippers Basketball Club, a professional basketball franchise. Levin and Lipton met with Philip Knight to discuss the sale of the Clippers to...

Yellow Corporation donates the following property to the State University: ABC Corporation stock purchased two years ago for $18,000. The stock, which trades on a regional stock exchange, has a...

Bart and Elizabeth Forrest, both age 47, are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2016. They present you with the...

A black firefighter alleges that each time he is transferred from one fire station to another, he must take his bed with him, on orders of the fire chief. The chief defends on the basis that it is a...

Puce has two individual shareholders, Abram and Carmella. The shareholders purchased their stock in Puce four years ago at a cost of $500,000 each. For the past nine years, Puce has been engaged in...

Fiscus, age 23, entered into an oral contract with Badger, a 30-year-old bricklayer, for the construction of a backyard barbecue for a fee of $ 300. The work was completed in two weeks, as agreed. a....

Johnson, a manufacturer of air conditioning units, made a written contract with Maxwell to sell to Maxwell forty units at a price of $200 each and to deliver them at a certain apartment building...

William Moore owned Moore Enterprises, a whole-sale tire business. Williams son, Jonathan, worked as a Moore Enterprises employee while he was in high school. Later, Jonathan started his own...

Roberto has received various gifts over the years. He has decided to dispose of the following assets he received as gifts: a. In 1951, he received land worth $32,000. The donor's adjusted basis was...

Suppose that Sun Farms contacts every basil grower in the country and buys the last remaining chemical-free basil anywhere. Nevertheless, Sun Farms is able to ship only 1,475 pounds to Vals. Would...

Leo Bongers died intestate. Alfred Bongers and Delores Kuhl, Leos nephew and niece, were appointed personal representatives of his estate. Leo left more than 120 antique cars, trucks, and...

Erica and Raphael are divorced during the current year. Because Erica made millions in the record industry while Raphael served as the homemaker and primary caretaker of baby Dexter, Erica agrees to...

In year 1, the Helpful Trust agreed to make a $50,000 contribution to Local Soup Kitchen, a charitable organization. Helpfuls board agreed to the gift at a November year 1 meeting, but the check was...

Identify each of the following as a tax preference item (PREF), an AMT adjustment item to calculate preadjustment AMTI (ADJ), an item to adjust from preadjustment AMTI to ACE (ACE), or none of these...