Hello-Hello is a U.S. telecommunications company with global operations. Sophia is an assistant vice president of Hello-Hello. She is dispatched to China to handle two situations. First, a shipment...

You and a former classmate started a computer software company five years ago. Originally, the two of you were the owners and only employees. The foundation of your company was your combined...

Jarold Daniel Friedman worked as a temporary computer contractor for a pharmaceutical warehouse. The warehouse offered him a permanent position, but the warehouse required that he get a mumps...

On June 15, 2014, Sheridan filed his 2013 income tax return reflecting a tax of $10,500. On October 5, 2015, he filed an amended 2013 return showing an additional $6,400 of tax, which he paid with...

Howard Harrison, a longtime customer of Western Bank, operates a small department store, Harrisons Store. Because his store has few experienced employees, Harrison frequently travels throughout the...

If there was any ambiguity on the application, should it be resolved in favor of the insured or the insurer? Provident Insurance, Inc., issued an insurance policy to a company providing an employee,...

Dr. Citrin had an agreement with Dr. Mehta for Mehta to work in Citrin's medical offices to see his patients when he was on vacation. While Citrin was on vacation, Mehta saw a patient and...

As an internal auditor for CRA, Inc., you are assigned to a team working on an ongoing project to identify possible fraud. The project started with time trend analysis of purchase prices of all items...

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 reported no...

Paul owns a building used in his business with an adjusted basis of $340,000 and a $750,000 FMV. He exchanges the building for a building owned by David. Davids building has a $950,000 FMV but is...

Nina was getting ready to go to a party and could not find her bracelet. She remembered wearing it last weekend and taking it off at a bar to show to friends. Her memory of the remainder of that...

1. Should stare decisis be such a powerful doctrine that it trumps modern societal realities (such as baseballs growing use of interstate commerce via radio and television)? 2. As a public policy...

Maggie could not conceive a child using natural means, so she sought out a woman who would donate an egg to be surgically implanted in Maggie. Which of the following items are deductible by Maggie in...

Oleander Corporation, a calendar year entity, begins business on March 1, 2016. The corporation incurs startup expenditures of $64,000. If Oleander elects 195 treatment, determine the total amount...

Reginald Delaney managed a Taco Time restaurant in Portland, Oregon. Some of his customers told Mr. Ledbetter, the district manager, that they would not be eating there so often because there were...

ETHICS: Richard and Michelle Kommit traveled to New Jersey to have fun in the casinos. While in Atlantic City, they used their MasterCard to withdraw cash from an ATM conveniently located in the pit,...

Alpha Rolling Mill Corporation, by letter dated June 8, offered to sell Brooklyn Railroad Company two thousand to five thousand tons of fifty-pound iron rails upon certain specified terms, adding...

McLeod purchased several items from Sears, Roebuck & Co. on credit. The description of the items, in which Sears took a purchase money security interest, was as follows: MITER SAW; LXITVRACDC [a...

Consider the following cases and determine whether the financing statements as filed would be valid under Article 9. Be sure to consider the standard of seriously misleading under Revised Article 9....

The Consumer Product Safety Commission is reconsidering a rule it first proposed in 1997 that would require child-resistant caps on household products, including cosmetics. When the rule was first...

For years, courts, employers, and employees have struggled with the issue of employee drug testing. Employers want their employees to be drug free, whereas employees do not want to submit to an...

Glen, whose tax rate is 33%, sells each of the following assets for $200,000. Each case is an independent case. Sec 1231 Gain Ordinary Taxed at Taxed at Taxed at Taxed at (Loss) Income | 33% 25% 20%...

The Chief Executive Officer of a client of your public accounting firm saw the following advertisement in a financial newspaper: DONATIONS WANTED The Center for Restoration of Waters A Nonprofit...

Plaintiff, Beth Lyons, a staff attorney for the Legal Aid Society (Legal Aid) brought suit against her employer, alleging that Legal Aid violated the Americans with Disabilities Act (ADA) and the...

On what basis might Cameron maintain a suit against Anderson?

In May, a homeowner made a contract with a roofer to make repairs to her house by July 1. The roofer never came to repair the roof, and heavy rains in the fall damaged the interior of the house. The...

Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $480,000. He receives condemnation proceeds of $460,000 and invests the proceeds...

The Pardues owned land used for a commercial horse breeding operation. Some neighbors raised turkeys on contract for Perdue Farms. After 10 years, a farm was cited for improper handling of turkey...

What is the effect on net income of not recording sales returns?

Bonnie is married and has 1 child. She owns Bonnies Rib Joint, which produces a taxable income of approximately $100,000 per year. a. Assume that Bonnies taxable income is $40,000 without considering...

Jennelle and Paula are equal partners in the J&P Manufacturing Partnership. The partnership will form J&P Corporation by exchanging the assets and liabilities of the J&P Manufacturing Partnership for...

On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of...

Ali owns 100 shares of Brown Corporation stock. He purchased the stock at five different times and at five different prices per share as indicated. On April 28, 2016, Ali will sell 40 shares of Brown...

What type of bailment relationship was created when Denai agreed to store Finneys boat? What degree of care was Denai required to exercise in storing the boat? Vanessa Denai purchased forty acres of...

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...

Peter is a professor of mathematics at State University. His lifetime avocation has been sailing, and he owns an oceangoing sailing vessel. He plans to retire in five years and spend the remainder of...

Fritz Hoffman and Fritz Frey contracted the Sun Valley Company (Company) about purchasing a 1.64 acre piece of property known as the Ruud Mountain Property, located in Sun Valley, Idaho, from...

Ramada Inns, Inc. (Ramada Inns), is a franchisor that licenses franchisees to operate motor hotels using the Ramada Inns trademarks and service marks. In August, the Gadsden Motel Company (Gadsden),...

In 1998, Douglas purchased an office building for $500,000 to be used in a business. Douglas sells the building in the current tax year. Explain why the recognized gain or loss for regular income tax...

Terrance is age 71 and retired. Beginning in 2016, he must start taking minimum distributions from his IRA account that had a balance of $150,000 as of December 31, 2015. Make these three...

On November 23, Acorn, a dress manufacturer, mailed to Bowman a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would remain open for ten days and...

Girard & Company, Certified Public Accountants, audited the financial statements included in the annual report submitted by PMG Enterprises, Inc., to the Securities and Exchange Commission (SEC). The...

Compare an implied contract with a quasi contract.

Why is it important to conduct activities that do not arouse suspicion first and interview the primary subject near the end of your investigation? What could occur if you fail to do this?

Multiply Choice 1. A sole proprietorship: (a) Must file a tax return (b) Requires no formal steps for its creation (c) Must register with the Secretary of State (d) May sell stock (e) Provides...

What 1998 article distinguishes between euthanasia and the withdrawal of life-sustaining treatment?

In 2001, Donald Malen purchased a Yard-Man riding mower at a Home Depot store. The mower was manufactured by MTD Products in 1998 and was advertised as "Reconditioned Power Equipment" with a "Full...

Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. (Assume that neither Rafael nor Crane plans to make any special tax elections at the time of...

Associated Builders, Inc., provided labor and materials to William M. Coggins and Benjamin W. Coggins, doing business as Ben & Bill's Chocolate Emporium, to complete a structure on Main Street in Bar...

The federal tax code is riddled with special interest loopholes. Most of these exist because firms and trade associations lobby Congress and provide campaign support to members of Congress to gain...

Nero needs $500 to buy textbooks and other supplies. Olivia agrees to loan Nero $500, accepting as collateral Neros computer. They put their agreement in writing. How can Olivia let other creditors...

Between 1996 and 1998, Donna Swanson received several anonymous, handwritten letters that, among other things, accused her husband Alan of infidelity. In 1998, John Grisham, Jr., the author of The...

Ryco Construction Company purchases 15 residential lots in a new subdivision for $1,500,000. On these lots, it builds residences that it sells for a total of $6,200,000. Determine Rycos DPGR.

Use the RIA Checkpoint Citator 2nd to evaluate Revenue Ruling 2001-60. a. What is the rulings complete citation? b. What was the effect of Rev. Rul. 2001-60 on Rev. Proc. 99-49 and Rev. Rul. 55-290?...

Sara Student is a full-time first-year student at Small State University (SSU). Her tuition for the year is $ 42,000, which is paid by Saras mother, Susan. Sara also has a job as a model, earning...

Holly inherited $10,000 of City of Atlanta bonds in February. In March, she received interest of $500, and in April she sold the bonds at a $200 gain. Holly redeemed Series EE U.S. savings bonds that...

In 2015, Dick, Evan, and Fran form Triton Corporation. Dick contributes land (a capital asset) having a $50,000 FMV in exchange for 50 shares of Triton stock. He purchased the land in 2013 for...

Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later the Archers sued the Warners in a State court for fraud connected with the...

If Webster had made the chowder herself from a recipe that she had found on the Internet, could she have successfully brought an action against its author for a breach of the implied warranty of...

Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy...

Assume Sonics Inc., from the prior exercise, uses LIFO with the periodic inventory system. Thus the LIFO cost of ending inventory at year 1 of 150 units is $ 1,600 (100 @ $ 10 + 50 @ $ 12). Suppose...

Robert Bolus was engaged in various businesses in which he sold and repaired trucks. He decided to build a truck repair facility in Bartonsville, Pennsylvania. Bolus contacted United Penn Bank (Bank)...

Tom and Katie divorced in 2011. Under the divorce decree, Tom is required to pay alimony of $ 3,000 per month and child support for their daughter, Suri, of $ 2,000 per month. In 2013, at age 17,...

In 20X3, Carol Fortier was transferred by her employer to Vancouver from Toronto. She has made a number of financial transactions related to the move. Fortier has asked you for help in determining...

Richard Vanderbrooks home in New Orleans, Louisiana, was insured through Unitrin Preferred Insurance Co. His policy excluded coverage for, among other things, [f]lood, surface water, waves, tidal...

Describe how a partnership reports its income for tax purposes. Who makes most elections related to partnership income and deductions? What theory underlies this treatment?

Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Foxs in-come tax and Medicare...

Re-create Figure 11.6. (a) Shade in the area of the diagram indicating total national income (without offshoring), distinguishing income to multinational firms, non multinational firms, and workers....

Hank started a new business in June of last year, Hank's Donut World (HW for short). He has requested your advice on the following specific tax matters associated with HW's first year of operations....

Novo is a Danish multinational firm that produces industrial enzymes and pharmaceuticals (mostly insulin). In 1977, Novo's management decided to "internationalize" its capital structure and sources...

Steel Industries, Inc., ordered steel from Interlink Metals & Chemicals. The steel was to be delivered from a Russian mill. There were political and other issues in Russia, and the mill was shut...

A truck driver who refused to drive a truck because he smelled fumes informed his co-worker of this fact. When the employee was disciplined for refusing to take the truck, he alleged that he was...

The employer engaged in the practice of photographing an employee engaged in picket line activity. Is this illegal surveillance, even though the activity was open and obvious, no action was taken...

In October 2001, the following case was heard in New Jersey. A former optometrist was sentenced to seven years in state prison for conspiracy, theft by deception, falsifying records, and...

Ochre Corporation's board of directors decides to distribute property to its shareholders rather than pay a cash dividend. Why might Ochre's board make this decision?

Atlantic Ocean Kamp grounds, Inc. (Atlantic) borrowed $ 60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount....

Erica Aponte, age seven, attended Thanksgiving dinner at the home of Michael and Deborah Castor, her aunt and uncle. Following dinner, Erica, accompanied by her cousin, went outside and crawled...

BBB Company, which manufactures industrial plastics, owns the following assets. Characterize each asset as either a capital, ordinary, or Section 1231 asset. a. A computer system used in BBBs main...

Albert owns 100 acres of land on which he grows spruce Christmas trees. His adjusted basis for the land is $100,000. He receives condemnation proceeds of $10,000 when the city's new beltway takes 5...

Are Costello and Giordano personally liable to Ridgaways estate?

If Kafluk prevented fifty Asian people who were infected with bird flu from dying, would Arnetts conduct in this situation be ethical under a utilitarian model of ethics? Why or why not? Isabel...

Suppose that Georgia enacts a law requiring the use of contoured rear-fender mudguards on trucks and trailers operating within its state lines. The statute further makes it illegal for trucks and...

Asher and Stephen formed a corporation named Ampersand to produce plays. Both men were employed by the corporation. Stephen decided to write Phillys Beat, focusing on the history of rock and roll in...

Edna, 63, is a widow and works for Rhododendron Corporation. Her annual salary is $40,000. Rhododendron provides the following benefits to all employees: Medical insuranceThe cost of Ednas policy is...

Wesley and Myrtle (ages 90 and 88, respectively) live in an assisted care facility and for 2013 and 2014 received their support from the following sources: Percentage of Support Social Security...

At the beginning of the tax year, Melodie's basis in the MIP LLC was $60,000, including Melodie's $40,000 share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of...

Assume that Jill is engaged in painting as a hobby. During the year, she earns $1,000 from sales of her paintings and incurs $1,300 expenses for supplies and lessons. Jills salary from her job is...

The PDQ Partnership earned ordinary income of $150,000 in 2015. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses the standard deduction, and has other...

Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year it distributed $100,000 as dividends to its shareholders as follows: $5,000 to Guy a 5%...

Grant leased an apartment to Epstein for the term May 1, 2010, to April 30, 2011, at $750 a month payable in advance on the first day of each and every month of said term. At the time the lease was...

D drew a check to the order of P. P took the check postdated. P knew that D was having financial difficulties and that the particular checking account on which this check was drawn had been...

Pedro purchases 50 shares of Piper Company stock on February 19, 2008, at a cost of $4,300. He sells the 50 shares on July 2, 2011, for $9,000. On March 14, 2011, Pedro purchases 100 shares of Troxel...

1. Does the bank have to wait until the litigation is complete to enforce the personal guarantees against the physicians? Why or why not? 2. What is the impact of the departing physicians...

The Government of India (GOI) and several private class action plaintiffs (Indian citizens) sued Union Carbide India Limited (UCIL) and the parent corporation, Union Carbide Corporation (UCC), for...

On August 19, 1980, Joan Ioviero injured her hand when she slipped and fell while leaving the dining room at the Hotel Excelsior in Venice, Italy. This hotel was owned by an Italian corporation,...

Locate the following items, and e-mail to your professor a brief summary of the results. a. Charles Y. Choi, T.C.Memo. 2002-183. b. Ltr.Rul. 200231003. c. Action on Decision, 2000-004, May 10, 2000.

A negotiable promissory note executed and delivered by B to C passed in due course and was indorsed in blank by C, D, E, and F. G, the present holder, strikes out Ds indorsement. What is the...

Dow AgroSciences, LLC (DAS), makes and sells agricultural seed products, in 2000, Timothy Glenn, a DAS sales manager, signed a covenant not to compete. He agreed that for two years from the date of...

What standard of care applied to the shipment of the dome by Doty Express? Vanessa Denai purchased forty acres of land in rural Louisiana with a 1,600-square-foot house on it and a metal barn near...

John Adams is the manager at a local store. The store opened four years ago and has been doing very well. With current business growing, John decided to hire Peter ORiley to work as an accountant....