Jabil Circuit, Inc., is a publicly traded electronics and technology company headquartered in St. Petersburg, Florida. In 2008, a group of shareholders who had owned Jabil stock from 2001 to 2007...

Mr. and Mrs. Poe earned $115,900 compensation income and $963 interest this year and recognized a $600 short-term capital gain and a $7,200 long-term capital gain on the sale of securities. They...

1. After work, Evans went to someones house to socialize. On his way home from the party, he ran into OConnor. How could that possibly be within the scope of the McDonalds business? 2. But the...

Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lions share of Continentals dividends. Continental Corporation was eager to close an important...

On January 1, Damon, for consideration, orally promised to pay Gary $300 a month for as long as Gary lived, with the payments to be made on the first day of every month. Damon made the payments...

Multiply Choice 1. Under the UCC Secured Transactions Article, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? (a) Filing a...

The Park Plaza Hotel awarded its valet and laundry concession to Larson for a three-year term. The contract contained the following provision: It is distinctly understood and agreed that the services...

Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution...

While performing an audit of TCC Corporation, the audit team noticed something that didnt look right. The companys receivables aging report showed that bank loan eligible receivables were...

Which entity(ies) is/are subject to double taxation?

1. The PMPA regulates only the circumstances in which service-station franchisors may terminate a franchise or decline to renew a franchise relationship. Are there any reasons why Congress might have...

Jie owns a lawn mower repair business. Her repair shop is in a building she constructed on the lot on which her personal residence is located. How should Jie account for each of the following? a....

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000...

Find Revenue Ruling 83-163, 1983-2 CB 26, and answer the following questions. The purpose of these questions is to enhance your skills in reading and interpreting authorities that you locate while...

Rebecca owes Lewis $2,500 due on November 1. On August 15, Lewis assigns this right for value received to Julia, who gives notice on September 10 of the assignment to Rebecca. On August 25, Lewis...

Joe Brown gave to his wife, Mary Brown, $350,000 with which to buy real property. They orally agreed that title to the real property should be taken in the name of Mary Brown but that she should hold...

In early 2009, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of...

The Flomers were divorced in 2001. At the time of their divorce, they negotiated a settlement agreement containing the following post-minority-educational-support provision for the benefit of their...

Sonenberg Company managed Westchester Manor Apartments through its on-site property manager, Judith. Manor Associates Limited Partnership, whose general partner is Westchester Manor, Ltd., owned the...

An agent of Thor Food Service Corp. was seeking to sell Makofske a combination refrigerator-freezer and food purchase plan. Makofske was married and had three children. After being informed of the...

In what two ways could a paralegals conduct, even if technically accurate, be considered the unauthorized practice of law?

Tomiko owns the copyright to several classic Motown songs. In 2009, he became aware that Tinseltown Records was selling several of his songs without his permission. He sues Tinseltown seeking...

The Fruehauf Corporation (Fruehauf) is engaged in the manufacture of large trucks and industrial vehicles. The Edelman group (Edelman) made a cash tender offer for the shares of Fruehauf for $ 48.50...

Suppose that all of the checks issued to the defendants were made payable to Fasig-Tipton Co., Fasig-Tipton Midlantic, Inc. Under the Uniform Commercial Code, were the instruments payable jointly or...

Thomas Baker and others who bought new homes from Osborne Development Corp. sued for multiple defects in the houses they purchased. When Osborne sold the homes, it paid for them to be in a new home...

Chilla Mitchell decided to sell her 1995 Cadillac Concours. She talked to Tommy Thrash, the proprietor of an automobile dealership called "Repro City," and Thrash assured her that he could get...

In general, courts are reluctant to grant shareholders petitions for corporate dissolution except in extreme circumstances, such as when corporate directors or shareholders are deadlocked and the...

Jasmine Gregory is a 20% member in Sparrow Properties LLC, which is a lessor of residential rental property. Her share of the LLC's losses for the current year is $100,000. Immediately before...

Judith and Donald Eckstein were married and had two daughters. Years later, Judith left the marital abode in the parties jointly owned Volkswagen van with only the clothes on her back. She did not...

Seal Polymer Industries sold two freight containers of latex gloves to Med-Express, Inc., a company based in North Carolina. When Med-Express failed to pay the $104,000 owed for the gloves, Seal...

Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food containerproducing company based in Cairo, Egypt, to enable...

Assume that Wrigley Juice is a partnership owned equally by Vinnie and Chandra. Explain the effect of Wrigleys results on Vinnies and Chandras tax returns. Wrigley Juice has the following income,...

Noah, who has $62,000 of AGI before considering rental activities, has $70,000 of losses from a real estate rental activity in which he actively participates. He also actively participates in another...

Jim has been a faithful employee of Daddy's Denture, Inc. (DD) for four years. He has held various positions where he handles receipts, credit memos, and other accounting records. Along with recently...

Charles Zandford was a securities broker for Prudential Securities, Inc., in Annapolis, Maryland. In 1987, he persuaded William Wood, an elderly man in poor health, to open a joint investment account...

Below are the six steps of the tax research process, in random order. Please rearrange these steps into the correct order. a. Locate authority. b. Identify the issues. c. Get the facts. d....

Procter & Gamble (P& G) began a Pampers catalog promotional offer in 1981. A statement on each box of Pampers explained that by saving the teddy bear proof-of- purchase symbols (Teddy Bears points)...

What types of issues lend themselves to international solutions through international law?

Bob was waiting at the crosswalk for the light to turn green. As he stood there, a car that was stopped in the road next to him suddenly exploded, and Bob was injured by the blast. A defect in the...

Ronald O. Perelman, chairman of the board and CEO of Pantry Pride, met with his counterpart at Revlon, Michel C. Bergerac, to discuss a friendly acquisition of Revlon by Pantry Pride. Revlon rebuffed...

Dwayne Maddox and his wife, Amanda, were driving home on a highway in their Nissan Pathfinder SUV. Dwayne, who was driving the vehicle, weighed 170 pounds, and Amanda, who was sitting in the...

Hutchinson Baseball Enterprises, Inc. (Hutchinson, Inc.), was incorporated under the laws of Kansas. Some of the purposes of the corporation, according to its bylaws, were to promote, advance, and...

Indicate whether each of the following items is considered a primary authority or a secondary authority. a. Fin Hay Realty Co. v. U.S., 22 AFTR 2d 5004 (CA-3, 1968). b. 702(a). c. Rev. Proc. 77-37,...

Betty, a married taxpayer, makes the following gifts during the current year (2015): $20,000 to her church, $50,000 to her daughter, and $40,000 to her husband. What is the amount of Bettys taxable...

Lisbeth makes the following interest-free loans during the year. The relevant Federal interest rate is 5%, and none of the loans are motivated by tax avoidance. All of the loans were outstanding for...

Pine Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Connor, who has always operated it as a C corporation. However, at the beginning of this year, Connor made...

Manuel is an employee of Etowah Corporation and has worked for the company for 22 years. Employees are not required to contribute to the companys defined benefit plan. Based on the plan, Manuel can...

Elizabeth, a widow since 2000, made taxable gifts of $3 million in 2011 and $4 million in 2015. She paid no gift tax on the 2011 transfer. What is her tax base for determining any gift tax on the...

Last year, Patty contributed land with a $4,000 basis and a $10,000 FMV in exchange for a 40% profits, loss, and capital interest in the PD Partnership. Dave contributed land with an $8,000 basis and...

Several years ago, Pierce purchased a tract of land on which stood an old, vacant house. Recently, Pierce employed Fried, a carpenter, to repair and remodel the house. While Fried was tearing out a...

Pierre is a certified high school teacher in Kansas. During the year, his wifes employer transfers her to New Jersey. In applying for a job in New Jersey, Pierre is informed that he will be granted...

What should you do when you do not find anything while researching a specific source? After finding several legal sources that address the research topic, what considerations should you keep in mind...

On January 3, 1991, Central District Alarm (CDA) and Hal-Tuc entered into a written sales agreement providing that CDA would sell and install new security equipment described on an equipment list...

The Banco Central administered a humanitarian plan for the government of Ecuador. Fernando Banderas and his wife presented false claims that the bank paid. After the fraud was discovered, the bank...

Amy has LTCGs that are taxed at different tax rates, 15%, 25% and 28%. She also has NSTCLs that amount to less than her NLTCG. The procedure for offsetting the NSTCL against the LTCGs is favorable to...

Jennifer Homan took her cell phone to a store owned by R&K Trading, Inc., for repairs. Later, Hoffman filed a suit in a New York state court against R&K, Verizon Wireless, Inc., and others. Homan...

On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400.85. During the first one and one-half months after the purchase, Peckham discovered that the cars hood was dented, its gas tank...

This chapter discussed a number of sources of American law. Which source of law takes priority in the following situations, and why? (a) A federal statute conflicts with the U.S. Constitution. (b) A...

Compare the limitations of the liability of a warehouse and of a hotelkeeper

ABC Company has instituted good internal controls and has never, until last month, had a problem with fraud. But, several weeks ago, someone with access to keys entered the controllers office and...

Paul Preppie is an accountant for the Very Big (VB) Corporation of America, located in Los Angeles. When Paul went to work for VB, he did not have a college degree. VB required that Paul earn a B. S....

John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In 2014, John worked as a computer technician at a local university earning a salary of $52,000, and...

Fedun rented a building to Gomer, who did business under the name of Mikes Cafe. Later, Gomer was about to sell the business to Brown and requested Fedun to release him from his liability under the...

Hambro Bank, Ltd., an English bank, received a cable from a Danish company, A.O., requesting that an irrevocable letter of credit be opened in favor of J. H. Rayner and Company. A.O. instructed...

Red win Wilchcombe is a musician and music producer. In 2002, Wilchcombe met Jonathan Smith, known as Lil Jon, a member of Lil Jon & The East Side Boyz (LJESB). Lil Jon and LJESB are under contract...

Steve Holmes and his son Mike were partners in a construction business. Steve also owned a ranch, which he contributed to the partnership, even though Steve was still listed as the owner of record....

Norma, who uses the cash method of accounting, lives in a state that imposes an income tax. In April 2014, she files her state income tax return for 2013 and pays an additional $1,000 in state income...

Susan, Steve, and Sandy own 15%, 35%, and 50%, respectively, in the SSS Partnership. Susan sells securities for their $40,000 FMV to the partnership. What are the tax implications of the following...

Riffe, while serving as an officer of Wilshire Oil Company, received a secret commission for work he did on behalf of a competing corporation. Can Wilshire Oil recover these secret profits and, in...

Washoe Medical Center, Inc., admitted Shirley Swisher for the treatment of a fractured pelvis. During her stay, Swisher suffered a fatal fall from her hospital bed. Gerald Parodi, the administrator...

THE LEGAL ENVIRONMENT DIMENSION How could Access Organics have obtained a noncompete agreement from Hernandez that would have been enforced? THE ETHICAL DIMENSION Would an economic recession and...

Colleen, Rosemary, and Suzanne own a software development firm. Colleen owns 45% of the business, Rosemary 30%, and Suzanne 25%. The net operating income from the business is $220,000. Assume Suzanne...

Houston repeatedly promised his daughter, Allyson, that he would pay one-half of the costs of Allyson attending a private, historically African-American, college or university. Relying on this...

Big CPA Firm has many partners in one of its local offices. Two of these partners are Tom, a tax partner, and Alice, an audit partner. Because of the size of the office, Tom and Alice do not know...

Barry Engel was president of Gel Spice Company, which imported, processed, and packaged spices. As president, he was responsible for the purchasing and storing of spices in the companys warehouse in...

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

The Hagues, husband and wife, owned a 160 acre tract that they decided to sell. They entered into a listing agreement with Harvey C. Hilgendorf, a licensed real estate broker that gave Hilgendorf the...

Simone Cherniak has just completed the second year of operating her veterinary clinic. You have been retained by Cherniak for tax assistance and advice. At a recent meeting, you gathered information...

Martha owns 500 shares of Columbus corporation common stock at the beginning of the year with a basis of $82,500. During the year, Columbus declares and pays a 10% no taxable stock dividend. What is...

John Doe purchased a bottle of Bleach-All, a well-known brand, from Roes combination service station and grocery store. When John used the Bleach-All, his clothes deteriorated due to an error in...

Discuss fully whether either of the following actions would constitute a violation of Title VII of the 1964 Civil Rights Act, as amended: (a) Tennington, Inc., is a consulting firm and has ten...

Cummings, Okawa, and Taft are recent college graduates who want to form a corporation to manufacture and sell personal computers. Peterson tells them he will set in motion the formation of their...

Suppose a firm faces a current tax rate of 35% but expects this rate to fall to 20% in the future. Employees on average face a current marginal tax rate of 31% but expect this rate to fall to 20%...

Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of the stock (and Rose's assets) is about six times Vance's adjusted basis for the stock. He is negotiating with an...

1. What are the conflicting public policy concerns in this case? 2. Why would Mattison sue Johnston for interference rather than suing Drowne for breach? Mattison owned a beauty salon and hired...

Using the facts of Problem 14, determine the 2015 end-of-year balance in Prances deferred tax asset and deferred tax liability balance sheet accounts. In problem Prance, Inc., earns pretax book net...

Teal, Inc., a foreign corporation, pays a dividend to its shareholders on November 30. Red, Inc., a U.S. corporation and 7% shareholder in Teal, receives a dividend of 10,000K (a foreign currency)....

Before her death in 2009, Lucy entered into the following transactions. a. In 2000, Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account,...

Dawn, a single, cash-method taxpayer, paid the following taxes in 2015: Dawns employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for FICA from her 2015...

In each of the following cases involving travel expenses, indicate how each item is reported on the taxpayers tax return. Include any limitations that might affect its deductibility. a. Marilyn lives...

Dad gives Son a 20% capital and profits interest in the Family Partnership. Dad holds a 70% interest, and Fred, an unrelated individual, holds a 10% interest. Dad and Fred work in the partnership,...

Sync Computers, Inc., makes computer-related products under the brand name Sync, which the company registers as a trademark. Without Syncs permission, E-Product Corp. embeds the Sync mark in...

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the...

Regarding the formula for the Federal gift tax (see Concept Summary 18.1 in the text), comment on the following observations. a. A credit is allowed for the gift taxes actually paid on prior gifts....

Yong received a 40% general partnership interest in the XYZ Partnership in each of the independent situations below. In each situation, assume the general partners share the economic risk of loss...

Vincent (Vinny) Vineyard is a very successful physician in Temecula, California. He earns approximately $ 800,000 per year from his medical practice. His two children have graduated from college and...

Marc, age 45, sells his personal residence on May 15, 2015, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell the residence. He has lived in the residence...

Until the end of year 0, Magic Carpets (MC) was a C corporation with a calendar year. At the beginning of year 1 it elected to be taxed as an S corporation. MC uses the LIFO method to value its...

Jackson invested $190,000 in a passive activity five years ago. On January 1, 2014, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000...

You have just received a report suggesting that a chemical your company uses in its manufacturing process is very dangerous. You have not read the report, but you are generally aware of its contents....