Able Time Inc. imported a shipment of watches into the United States. The watches bore the mark TOMMY, which is a registered trademark owned by Tommy Hilfiger. U.S. Customs seized the watches...

In 1994, Brian and Penny Grieme bought a house in Mandan, North Dakota. They borrowed for the purchase through a loan program financed by the North Dakota Housing Finance Agency (NDHFA). The Griemes...

Bad Boy Enterprises LLC (BBE) designs and manufactures the Bad Boy Classic vehicle, an electric four wheel drive vehicle that is built on a golf cart chassis. The buggy is designed primarily for off...

You inherit a tax problem that was researched five months ago. You believe the answer is correct, but you are unfamiliar with the general area. How would you find recent articles dealing with the...

1. Happy House, Inc., an exempt organization, records $340,000 of gross unrelated business income (UBI) in its first year of operations. The following expenses were incurred in producing the UBI....

Judy worked the morning shift at Wild Oats. She bought a Pepsi but got too busy to drink it, so she left it on a shelf behind the counter to drink the next day. Cindy was working that afternoon. She...

In September 2001, Cory Babcock and Honest Air Conditioning & Heating, Inc., bought a new 2001 Chevrolet Corvette from Cox Chevrolet in Sarasota, Florida. Their retail installment sales contract...

THE E-COMMERCE DIMENSION Is a mistake such as the one in this case likely to occur when software is used to draft a document? Why or why not? THE ETHICAL DIMENSION What may have motivated the...

The Cardinal Group had filed on a consolidated basis for several years with its wholly owned subsidiary, Swallow, Inc. The group used a calendar tax year. On January 25, 2014, Heron acquired all of...

John and Maria support their 21-year-old son, Bill. The son earned $ 12,200 last year working in a part-time job. Bill went to college part time in the spring semester of the current year. To...

On November 23, Sylvia agreed to sell to Barnett her Pontiac automobile for $7,000, delivery and payment to be made on December 1. On November 26, Barnett informed Sylvia that he wished to rescind...

Susan Guinta is a real estate salesperson. Smythe Cramer Co. went to an Ohio state court and obtained a garnishment order to attach Guintas personal earnings. The order was served on Russell Realtors...

Assume that Janet files a petition under Chapter 7. Further assume that the median family income in the state in which Janet lives is $49,300. What steps would a court take to determine whether...

Wearing seat belts and shoulder harnesses is an efficient means of minimizing the costs of automobile accidents. Assuming that the benefits of these passive restraints exceed their costs, but that...

Mr. Briggs purchased an apartment complex on January 10, 2013, for $2 million with 10% of the price allocated to land. He sells the complex on October 22, 2015, for $2.5 million. Assume that 10% of...

Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange...

B. C. Ziegler and Company (Ziegler) was a securities company located in West Bend. It had established an internal procedure by which its customer lists were treated confidentially. This procedure...

New West Fruit Corporation (New West) and Coastal Berry Corporation are both brokers of fresh strawberries. In the second half of 2009, New Wests predecessor, Moncs Consolidated Produce, Inc., loaned...

Yannuzzi has a checking account at Texas Bank. She frequently uses her access card to obtain cash from the banks automated teller machines. She always withdraws $50 when she makes a withdrawal, but...

Rhonda Schroeder married Gennady Shvartsshteyn (Gene) in 1997. Gene worked at Royal Courier and Air Domestic Connect in Illinois, where Melissa Winyard also worked in 1999 and 2000. During this time,...

The Milwaukee County Juvenile Detention Center established a new policy that required each unit of the facility to be staffed at all times by at least one officer of the same gender as the detainees...

Nome 2000, a partnership, owned a large tract of wilderness land in Alaska. The Fagerstrom family had used the property for camping and holidays since about 1944. In 1966, Charles and Peggy...

Alitech Corp. is a small midwestern business that owns a valuable patent. Alitech has approximately 1,000 shareholders with 100,000 authorized and outstanding shares. Block Corp. would like to have...

In 1995, Helikon Furniture Co. appointed Tom Gaede as an independent sales agent for the sale of its products in parts of Texas. The parties signed a one-year contract that specified, among other...

Assume that burglars correctly believe that many people in your neighborhood keep guns. How might this fact increase your security? How might this fact endanger you?

Protection Alarm Co. made a contract to provide burglar alarm security for Fretwells home. The contract stated that the maximum liability of the alarm company was the actual loss sustained or $50,...

1. Is Anna correct in assuming that a contract can exist even though the sales price for the computer equipment was not specified? Explain. 2. According to the Uniform Commercial Code (UCC), what...

Locke, a physical education teacher, served as an umpire for high school baseball games for a number of years. He was a member of the Southeast Alabama Umpires Association (SAUA), which provides...

Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Terns only business since its incorporation in 2012 has been land surveying services. In Terns state of...

On March 1 of the current year, Alice, Bob, Carla, and Dick form Bear Corporation and transfer the following items: Property Transferred Alice purchased the land and building several years ago for...

Andrew, Bea, Carl, and Carl, Jr. (Carl's son), and Tetra Corporation own all of the single class of Excel Corporation stock as follows: Andrew, Bea, and Carl are unrelated. Bea owns 75% of the Tetra...

Wendy, Xenia, and Yancy own 40%, 8%, and 52%, respectively, of the WXY Partnership. For each of the following independent situations occurring in the current year, determine whether the WXY...

Pedro, who is a single taxpayer, had AGI of $328,000 for 2016. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation .................... $12,000 State and...

Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic...

At the beginning of the year, Penguin Corporation (a calendar year tax payer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On...

Kentucky undercover police officers set up a controlled buy of cocaine outside an apartment complex. After the deal took place, uniformed police moved in on the suspect. The suspect ran to a...

Angie and her daughter, Ann, who are the only shareholders of Bluebird Corporation, each paid $100,000 four years ago for their shares in Bluebird. Angie also owns 20% of the stock in Redbird...

Match the following terms with their definitions: ___ A. Implied contract ___ B. Mirror image rule ___ C. Consideration ___ D. Liquidated debt ___ E. Bilateral contract 1. A debt in which the amount...

Jones had fifty crates of oranges equally divided between grades A, B, and C, grade A being the highest quality and C being the lowest. Smith had one thousand crates of oranges, about 90 percent of...

After paying to clean the portion of the Mohawk River around its oil refinery and storage operation, Niagara Mohawk Power Corporation (NMPC) filed claims for contribution against several other...

Assume in Problem 58 that the land had a fair market value of $630,000 on the date of its transfer to Pink Corporation. On the date of the liquidation, the land's fair market value has decreased to...

Soden, a contractor, made a contract to build a house for Clevert. The sales contract stated that if either party defaults in the performance of this contract, that party would be liable to the other...

Helm Instruction Co. in Maumee, Ohio, makes custom electrical control systems. In September 1998, Helm hired Patrick Walsh to work as comptroller. Walsh soon developed a close relationship with...

Lynn and Alicia are equal partners in a local bookstore. They have operated the bookstore for 2 years but have reported only a small profit. This year they anticipate that the bookstore will generate...

On December 17, ZZZZ Best Co., Inc. (the debtor), borrowed $7 million from Union Bank (the bank). On July 8 of the following year, the debtor filed a voluntary petition for bankruptcy under Chapter...

Montana imposed a severance tax on every ton of coal mined within the state. The tax varied depending on the value of the coal and the cost of production. It could be as high as 30 percent of the...

Douglas and Sandy Glosson offered to sell 36 acres that included a truck shop, warehouse, and office. Douglas Glosson and Parker agreed on terms and signed the agreement. Sandy Glosson did not sign...

Raymond Johnson snatched a purse that had been left in an unattended car at a gas station. The purse contained both money and a firearm. Johnson was convicted for the crimes of grand theft of...

Fredericks, a hotel owner, had a dog named Sport that he had trained as a watchdog. When Vincent Zarek, a guest at the hotel, leaned over to pet the dog, it bit him. Although Sport had never bitten...

Salem Supply Co. sells new and used gardening equipment. Ben Buyer purchased a slightly used riding lawn mower for $1,500. The price was considerably less than that of comparable used mowers. The...

Tate and Fitch were longtime friends. Tate was a man of considerable means; Fitch had encountered financial difficulties. To bolster his failing business, Fitch desired to borrow $6,000 from Farmers...

Since the 1950s, Qualitex Company has used a special shade of green-gold color on the pads that it makes and sells to dry cleaning firms for use on dry cleaning presses. In 1989 Jacobson Products (a...

Frank Kolk was the manager of Triples American Grill, a sports bar and restaurant. Kolk and John Baines opened bank accounts in the name of the bar, each signing the account signature cards as...

Why do you suspect that revenue-related financial statement fraud schemes are most common and inventory-related fraud schemes are next most common?

What is a monopoly? What is market power? How do these concepts relate to each other?

Cathy Coleman took out loans to complete her college education. After graduation, Coleman was irregularly employed as a teacher before filing a petition in a federal bankruptcy court under Chapter...

ABC, Inc., a domestic corporation, reports $50 million of taxable income, including $15 million of general limitation foreign-source taxable income, on which ABC paid $5 million in foreign income...

B & D Shrimp, Inc., a Delaware corporation, made a contract in Texas to sell a commercial shrimp boat to Donald Gosch and Jesse Bach. Gosch and Bach paid $5,000 down and received immediate possession...

Altidore Inc. operates a calendar-year-end business that suffers from dramatic seasonal variation in taxable income. For example, it often operates at a net loss for the first two quarters of the...

Andrea, who is in the 39.6% tax bracket, is interested in reducing her taxes. She is considering several alternatives. For each alternative listed below, indicate how much tax, if any, she would...

This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y contributed business assets with a $50,000 FMV. Ys adjusted basis in these assets was only $10,000....

Megan operates a house-cleaning business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets the business, and provides supplies and equipment. The business has been...

Henrioulle, an unemployed widower with two children, received public assistance in the form of a rent subsidy. He entered into an apartment lease agreement with Marin Ventures that provided,...

Assume that Dinah draws a check on Oxford Bank, payable to the order of Pam; that Pam indorses it to Amy; that Amy deposits it to her account in Houston Bank; that Houston Bank presents it to Oxford...

Six U.S. manufacturers of broad-spectrum antibiotics derived a large percentage of their sales from overseas markets, including India, Iran, the Philippines, Spain, the Republic of Korea, Germany,...

Suburban Power Piping Corp., under contract to construct a building for LTV Steel Corp., made a subcontract with Power & Pollution Services, Inc., to do some of the work. The subcontract provided...

Campbell Soup Co. imports tomato paste from a wholly owned Mexican subsidiary, Sinalopasta, S.A. de C.V. It deducted $416,324 from the computed value of goods shipped to the United States, which was...

The U.S. National Park Service (NPS) manages the Grand Canyon National Park in Arizona under a management plan that is subject to periodic review. In 2006, after nine years of background work and the...

Jay is single and works as a salesman. In December of the current year, he is selected as the company's outstanding salesperson. In recognition of this honor, he receives a $75,000 bonus, which puts...

Anita Baker, a then unknown singer, signed a multiyear recording contract with Beverly Glen Music, Inc. (Beverly Glen). Baker recorded for Beverly Glen a record album that was moderately successful....

The plaintiff, a German wine producer and exporter, contracted to ship 620 cases of wine to the defendant, a distributor in North Carolina. The contract was silent as to the shipment destination....

David files a bankruptcy petition under Chapter 13. After the claims of secured and priority creditors have been satisfied, Davids remaining bankruptcy estate has a value of $100,000. Davids...

Napster, Inc. (Napster), facilitates the transmission of MP3 files (a digital format for the storage of audio recordings) between and among its users. Through a process commonly called peer-to-peer...

Paula Enterprises hires Able to act as its agent to purchase a 1,000-acre tract of land from Thompson for $1,000 per acre. Paula Enterprises does not wish Thompson to know that it is the principal or...

1. Why was it unclear whether Wards pretermination actions constituted direct competition with his employer or were mere planning activities? 2. Suppose that Wards planning and development efforts...

Leyhs Outdoor Adventures, Inc., would like to begin providing life insurance coverage for its employees. Three employees are officers; each earns $100,000 per year. The other three employees each...

Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not an exempt operating foundation, and it is not eligible for the 1% tax rate. Interest income $...

1. Earlier, it was explained that a gratuitous agent is an agent nonetheless. Why do you think the court was unwilling to expand the definition of employee here? 2. If Ms. OConnor had complained to...

Patty pays $100,000 cash for Stans one-third interest in the STU Partnership. The partnership has a Sec. 754 election in effect. Just before the sale of Stans interest, STUs balance sheet appears as...

Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During the time he held the building he depreciated it by $32,000. What is the amount and character of the...

T.G.I. Fridays, a New York corporation and registered service mark, entered into an exclusive licensing agreement with Tiffany & Co. that allowed Tiffany to open a Fridays restaurant in Jackson,...

Panessi leased to Barnes for a term of ten years beginning May 1 certain premises located at 527529 Main Street in Cleveland. The premises were improved with a three-story building, the first floor...

Kiernan Construction Co. entered into a contract with Jackson for Jackson to build a house for her. Century Surety Co. executed a bond to protect Jackson from loss if Kiernan failed to construct the...

Must such discrimination have been committed by the employer or can the discrimination have been committed by society in general? Explain.

In St. Louis, Missouri, in August 2000, Richard Miller orally agreed to loan Jeff Miller $35,000 in exchange for a security interest in a 1999 Kodiak dump truck. The Millers did not put anything in...

What would happen if lawyers for one side withheld evidence in a case? How could the party affected have the problem corrected?

Simon owns stock that has declined in value since acquired. He has decided either to give the stock to his nephew, Fred, or to sell it and give Fred the proceeds. If Fred receives the stock, he will...

Find the court decision located at 101 AFTR2d 2008-1612. a. Which court heard the case? b. Who was the judge(s)? c. Which tax year(s) is in question and in what year was the case decided? d. Which...

Troy (single) purchased a home in Hopkinton, MA on January 1, 2007 for $300,000. He sold the home on January 1, 2014 for $320,000. How much gain must Troy recognize on his home sale in each of the...

Insul-Mark is the marketing arm of Kor-It Sales, Inc. Kor-It manufactures roofing fasteners, and Insul-Mark distributes them nationwide. Kor-It contracted with Modern Materials, Inc., to have large...

Section 103 of the Federal Public Works Employment Act establishes the MBE (Minority Business Enterprise) program and requires that, absent a waiver by the Secretary of Commerce, 10 percent of all...

Lion Raisins, Inc., is a family-owned, family-operated business that grows raisins and markets them to private enterprises. In the 1990s, Lion also successfully bid on more than fifteen contracts...

Bob, a sales representative for Central Computer Co., occasionally uses the Internet to obtain information about his customers and to look for new sales leads. While visiting the Web site of...

A KFC restaurant was on a major street in town until the city redesigned the road, leaving the KFC at the end of a dead-end road, which caused business to fall. The KFC owners sued the city for...

What are trade secrets, and what laws offer protection for this form of intellectual property?

Mr. Oaks has worked as the CEO of Turley Bank for the last three years. This past year, the outside auditor discovered some fraudulent loan activity in which Mr. Oaks was circumventing internal...

From the standpoint of the target corporation shareholders, what is the advantage of a taxable stock acquisition by a purchaser corporation compared to the purchasers acquiring all the targets assets...

In 2014, your client, Clear Corporation, changed from the cash to the accrual method of accounting for its radio station. The company had a positive 481 adjustment of $2.4 million as a result of the...

Williams purchased a used car from Stein for $1,000.Williams paid for the car with a check (written in pencil) payable to Stein for $1,000. Stein, through careful erasures and alterations, changed...

Kimbrells Furniture Co. sold a new television set and tape player to Charlie ONeil and his wife. Each purchase was on credit, and in each instance, a security agreement was executed. Later on the...