Williamson, her mortgage in default, was threatened with foreclosure on her home. She decided to sell the house. The Matthewses learned of this and contacted her about the matter. Williamson claims...

Look at the various fraud statistics earlier in this chapter. Determine the characteristics of the person most likely to perpetrate a large fraud. Then, debate your decision over a person with these...

The State of Ohio decides that Ohio's landfills are becoming too full at too rapid a pace, so it passes a law banning the import of waste generated out of state. Several landfill operators have...

Elki would like to invest $50,000 in tax-exempt securities. He now has the money invested in a certificate of deposit that pays 5.75% annually. What rate of interest would the tax-exempt security...

Artis owns 40%of the Rhode Island Chile Parlor (RICP). During the current year, Rhode Island gives Artis fringe benefits worth $4,000 in addition to his $30,000 salary. RICP's net taxable income...

In assessing the validity of a prior court decision, discuss the significance of the following on the taxpayers issue. a. The decision was rendered by the U.S. District Court of Wyoming. Taxpayer...

Sterling is a college professor with an extensive stock portfolio. Last year, he met Wheeler, a stockbroker with the firm of Ransom, LaForge, and Adkins. To get Sterlings business, Wheeler offered to...

Atul Bhagat was an employee of Nvidia Corporation. Nvidia successfully competed for a multimillion-dollar contract to develop the X-box video game console for Microsoft. Nvidia's CEO sent a...

As the building services manager for Fulton County, Georgia, Steve Fullard oversaw custodial services. Fullard determined which services to contract for, received the bids, and recommended the...

Melvin Lyttle told John Montana and Paul Knight about a Trading Program that purportedly would buy and sell securities in deals that were fully insured, as well as monitored and controlled by the...

Paul Wilkinson worked for a company that sold fuel to various military bases. He paid an employee of a competitor to provide him with information about bids for contracts for which both companies...

THE ETHICAL DIMENSION Is it ethical for an insurer to refuse to pay a claim under the terms of a policy that the insurer drafted? Discuss. WHAT IF THE FACTS WERE DIFFERENT? Suppose that Tennessee...

THE LEGAL ENVIRONMENT DIMENSION At Brieres stable, LaPlace had access to, and control over, Park Me In First at any time. Could Briere thus deny that a bailment relationship existed? Explain. WHAT IF...

Margaret Cleary is a paralegal who works for a law firm that requires her to bill clients seven hours a day. One of Margarets assignments was to prepare interrogatories on a real estate case. She...

What two general requirements must be met for a transaction to result in a capital loss?

William Schmalz entered into an employment contract with Hardy Salt Company. The contract granted Schmalz six months severance pay for involuntary termination but none for voluntary separation or...

For the balance due on the purchase of a tractor Henry Brown executed and delivered to Jane Jones his promissory note containing the following language: January 1, 2011, I promise to pay to the order...

As an assistant comptroller for Interior Crafts, Inc., in Chicago, Illinois, Todd Leparski was authorized to receive checks from Interiors customers and deposit the checks into Interiors account....

The Tacoma-Pierce County Health Department conducted an investigation into the quality of care provided by ambulance service providers in its jurisdiction. On the basis of that investigation, the...

Piece of America (POA) hired Gray Loon Marketing to design and publish its website. Gray Loon finished the site in December 2003 at a final cost of about $8,500. Once the website was running to POA's...

Hearsay is literally what a witness says he or she heard another person say. What makes the admissibility of such evidence potentially unethical?

Pearson and Steve and Tara Carlson agreed to buy a 2004 Dynasty recreational vehicle (RV) from DeMartinis RV Sales in Grass Valley, California. On September 29, Pearson, the Carlsons, and DeMartinis...

The After-School Care Corporation owned more than forty day-care centers specializing in providing care to elementary-school-aged children in the afternoons. The president of the company, Clark...

When a corporation wishes to issue certain securities, it must provide sufficient information for an unsophisticated investor to evaluate the financial risk involved. Specifically, the law imposes...

A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subscribe to common stock on June 30 of the current year. Each right entitles the holder to purchase...

Ann is a graduate economics student at State University. State University awarded her a $1,000 scholarship. In addition, Ann works as a half-time teaching assistant in the Economics Department at...

When Godfrey died in 2013, his assets were valued as follows: The executor sold the stock two months after the decedent's death for $2,200,000. The bonds were sold seven months after the decedent's...

Ken sold a rental property for $500,000. He received $100,000 in the current year and $100,000 each year for the next four years. $400,000 of the sales price was allocated to the building and the...

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a...

Tube Art was involved in moving a reader board sign to a new location. Tube Arts service manager and another employee went to the proposed site and took photographs and measurements. Later, a Tube...

By contract dated January 5, Rebecca agreed to sell to Nancy, and Nancy agreed to buy from Rebecca, a certain parcel of land then zoned commercial. The specific intent of Nancy, which was known to...

In 1998, William Larry Smith signed a lease for certain land in Chilton County, Alabama, owned by Sweet Smitherman. The lease stated that it was between Smitherman, and WLS, Inc., d/b/a [doing...

THE LEGAL ENVIRONMENT DIMENSION How could Norwest and the bank have avoided the problem that arose in this case? THE ETHICAL DIMENSION Why should the Millers be held responsible for a statement that...

Wonderful Wilderness, Inc., is a tax-exempt organization. Its mission is to "explore, enjoy, and protect the wild places of the earth; practice and promote the responsible use of the earth's...

Fran owns all 100 shares of Star Corporation stock. Her stock basis is $60,000. On December 1 of the current year, Star distributes 50 shares of preferred stock to Fran in a nontaxable distribution....

On March 31, 2011, Big Boats Company entered into a contract with Vacations Unlimited to produce a state-of-the-art cruise ship, to be completed within three years. Big Boats estimated the total cost...

Hannaford is a national grocery chain whose electronic payment processing system was breached by hackers as early as December 7, 2007. The hackers stole up to 4.2 million credit and debit card...

Nathan is run over by a car and left lying in the street. Sam, seeing Nathans helpless state, places him in his car for the purpose of taking him to the hospital. Sam drives negligently into a ditch,...

Felch was employed as a member of the faculty of Findlay College under a contract that permitted dismissal only for cause. He was dismissed by action of the President and Board of Trustees, which did...

On December 15, Judy wrote a letter to David stating that she would sell to David all of the mine-run coal that David might wish to buy during the next calendar year for use at Davids factory,...

Reebok manufactures and sells fashionable athletic shoes in the United States and abroad. It owns the federally registered Reebok trademark and has registered this trademark in Mexico as well. Nathan...

Acme Corporation decides to respond to what it sees as a moral obligation to correct for past discrimination by adjusting pay differences among its employees. Does this raise an ethical conflict...

What are five broad categories of crimes? What is white-collar crime?

THE ETHICAL DIMENSION If a Pride sales representative led the Inkels to believe that the dealership did not care about the excessive miles on the trade-in vehicle, should Pride be willing to incur...

Michael and Edith Jones owned a home that went into foreclosure. During this time, they were contacted by a representative of Rees-Max, whose notice read: There are only a few months to go in your...

Lion Raisins, Inc., is a family-owned business that grows and markets raisins to private enterprises. In May 1999, a USDA investigation reported that Lion appeared to have falsified inspectors'...

Milton Mende purchased the Star Midas Mining Co., Inc., for $ 6,500. This Nevada Corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities...

Solutions Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions...

You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed to be on the brink of failure but recently has begun to be profitable. In large part, the profitability is...

Daniel, while under the influence of alcohol, agreed to sell his 2003 automobile to Belinda for $8,000. The next morning, when Belinda went to Daniels house with the $8,000 in cash, Daniel stated...

Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2011 Thirty days after date I promise to pay Don Dole or order, Five Thousand Dollars. The holder...

What are the four requirements of a valid contract? Grant Borman, who was engaged in a construction project, leased a crane from Allied Equipment and hired Crosstown Trucking Company to deliver the...

Go to Case 34.2, Burlington Northern and Santa Fe Railway Co. v. White, __ U.S.__,126 S.Ct.2405, 165 L.Ed.2d 345 (2006), on pages 703 and 704. Read the excerpt and answer the following questions. (a)...

THE LEGAL ENVIRONMENT DIMENSION The Truth-in-Lending Act, HOEPA, and other consumer protection laws exist to protect purchasers from unscrupulous lenders or sellers. As consumers become better...

Sea Green Enterprises reports the following assets and liabilities on its balance sheet. Sea Green has just lost a product liability suit with damages of $10 million being awarded to the plaintiff....

Read and brief the following cases: a. Rownd, T. C. Memo. 1994-465 b. Arnes, 93-1 USTC 50,016.

Titan Corporation adopts a plan of liquidation. It distributes an apartment building having a $3 million FMV and a $1.8 million adjusted basis, and land having a $1 million FMV and a $600,000...

Frame the initial issue(s) arising from the following facts. What additional information would be helpful? a. Taxpayer purchases a ticket for the New Jersey lottery. He won $ 1,000. b. Taxpayer paid...

Analyze caps and limitations on litigation awards using the analysis of rent control in Chapter 2.

Tracy and Brenda are equal partners in Crescent Home Furniture, which is organized as an S corporation. For the year, the company reports sales revenue of $330,000 and business expenses of $195,000....

The Ethical Dimension In what ways was Rosols apparent motive similar to the most common reason that ethical problems occur in business? The Legal Environment Dimension How do the rules concerning...

Barry Engel owned and operated the Gel Spice Co., Inc. (Gel Spice), which specialized in the importation and packaging of various food spices for resale. All the spices Gel Spice imported were...

At the beginning of the current year, Sandy Brewer had a zero basis in her 38 shares of stock in Lindlee, an S corporation, a zero basis in a $5,000 note from Lindlee, and a $7,400 carryforward of a...

Jones, a minor, owned a 2009 automobile. She traded it to Stone for a 2010 car. Jones went on a three-week trip and found that the 2010 car was not as good as the 2009 car. She asked Stone to return...

Robert and Majorie Wake owned land that they used as both a cattle ranch and a farm. Each spring and autumn, the Wakes would drive their cattle from the ranch portion of the operation across an...

How do state, federal, and local public records assist fraud investigations?

Discuss the authoritative value of Davees v. Contractor.

While crossing an intersection, the client was struck by a vehicle driven by a minor. The minor's parents owned the vehicle, and the minor was driving with their knowledge and consent. The minor has...

Bonnie Strickland and her husband Jake formed the Strickland Family Limited Liability Company as part of their estate plan. They transferred 83 percent of the equity shares of the LLC to their...

It was announced today that Matrix Inc. will acquire Cajun Systems. Cajun Systems has assets with a tax basis of $ 5 billion and has $ 1 billion of liabilities. Prior to being acquired, Cajun Systems...

Each of the following examples presents a brief summary of the court opinion, followed by a client's fact situation. For each client fact situation, parts A through G, determine the following: 1....

Compare the tax consequences of a taxable asset acquisition and a Type C asset-for-stock reorganization, based on the following factors: a. Consideration used to effect the transaction. b....

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. Using the U.S. tax rate schedule, how much federal tax will she...

Reagan National Airport in Washington, D.C., is one of the busiest and most crowded airports in the nation. Accordingly, the Federal Aviation Administration (FAA) has restricted the number of...

B, a chemist, was employed by A, a manufacturer, to work on a secret process for As product under an exclusive three-year contract. A employed C, a salesperson, on a week-to-week basis. B and C...

Rodney Sharp was a fifty-six-year-old dairy farmer whose education did not go beyond the eighth grade. Upon the death of his wife of thirty-two years, Sharp developed a very close relationship with...

Richard, a retailer of video equipment, telephoned Craft Appliances and ordered a $1,000 videotape recorder for his business. Craft accepted Richards order and sent him a copy of the purchase...

GE contracted to provide kitchen appliances for an apartment complex for $93,500. Several months later, GE discovered that a mathematical error had been made in the bid and that the bid should have...

On April 15, Don Construction contracted to build a house for Jessup. The contract price was $55,000. The agreement contained a provision stating that the builder would deduct $1,000 a day from the...

Shirley Parker is the legal name of well-known actress Shirley MacLaine, who contracted with Twentieth Century Fox Film Corporation to play the female lead in a picture entitled Bloomer Girl, a...

Demas Yan and Dong Fu made an agreement to build condominiums on Yan's land in the Chinatown section of San Francisco. Their agreement provided that Yan would own 75 percent and Fu 25 percent of the...

Gwen Gullible was married to Darrell Devious. They were divorced two years ago. Three years ago (the year before their divorce), Darrell received a $ 250,000 retirement plan distribution, of which $...

Jerry sprayed all of the landscaping around his house with a pesticide in June 2015. Shortly thereafter, all of the trees and shrubs unaccountably died. The FMV and the adjusted basis of the plants...

1. Did Drs. Shawe and Badawy misappropriate trade secrets from PID? 2. What did the defendants take from PID? 3. Can a list of patients be a trade secret?

Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note payable to the order of Ben Bates for $500. Bates indorsed the note, Pay to Carl Cady upon his satisfactorily repairing...

In the late 1980s, Life Energy Resources, Ltd. (LER), a New York corporation, was a multilevel marketing network. LERs marketing plan provided that members of the general public could purchase its...

U.S. antitrust law reflects U.S. economic policy. If U.S. antitrust law resolves an economic dispute among British companies, has U.S. economic policy been extended to Britain? What are the...

McLin, Inc., a calendar year S corporation, holds $90,000 of AEP. Tobias, the sole McLin shareholder, has an $80,000 basis in his stock with a zero balance in the AAA. a. Determine the tax aspects if...

ABC, Inc., a domestic corporation, owns 100% of HighTax, a foreign corporation. HighTax has $50 million of undistributed E & P, all of which is attributable to general limitation income, and $30...

What is the subject of each of the following IRS Notices? a. Notice 89-114 b. Notice 99-51 c. Notice 2000-28

To: [Your name] From: Supervising Attorney Re: Mrs. Joyce Helger; probate of copy of lost original will We represent Mrs. Helger in the probate of her husband's estate. Mr. Helger died four weeks ago...

Tim is a real estate broker who specializes in commercial real estate. Although he usually buys and sells on behalf of others, he also maintains a portfolio of property of his own. He holds this...

Robert A. Kliesh, age 41, is single and has no dependents. Robert's Social Security number is 111-11-1112. His address is 201 Front Street, Missoula, MT 59812. He does not contribute to the...

Margaret contracted to buy a particular model Rolls-Royce from Paragon Motors, Inc. Only one hundred of these models are built each year. She paid a $3,000 deposit on the car, but Paragon sold the...

Smith, while in the course of his employment with the Bee Corporation, negligently ran the companys truck into Williams, injuring him severely. Subsequently, the Bee Corporation and the Sea...

1. How might Lt. Johnson address the burglary problem more effectively? 2. If Lt. Johnson decides on a problem solving approach, who should he include in his group of problem solvers? Be creative. 3....

Restate persuasively each of the following issues. Each issue should be redrafted twicepersuasively from the view of the opposing sides. A. Under the provisions of the exclusionary rule, should...

TGW, a calendar year corporation, reported $3,908,000 net income before tax on its financial statements prepared in accordance with GAAP. The corporations records reveal the following information: ...

Davis Ajouelo signed an employment contract with William Wilkerson. The contract stated: . . . whatever company, partnership, or corporation that Wilkerson may form for the purpose of manufacturing...

Berger was planning to produce a fashion show in Las Vegas. In April 1965, Berger entered into a written licensing agreement with CBS Films, Inc., a wholly owned subsidiary of CBS, for presentation...