On a weekday, Tamara Cohen, a real estate broker, showed a townhouse owned by Ray and Harriet Mayer to Jessica Seinfeld, the wife of comedian Jerry Seinfeld. On the weekend, when Cohen was...

Carmen buys a television set manufactured by AKI Electronics. She is going on vacation, so she takes the set to her mothers house for her mother to use. Because the set is defective, it explodes,...

Minth is the owner of the Hiawatha Supper Club, which he leased for two years to Piekarski. During the period of the lease, Piekarski contracted with Puttkammer for the resurfacing of the access and...

Nelson wanted to sell his home. Baker sent him a written offer to purchase the home. Nelson made some changes to Bakers offer and wrote him that he, Nelson, was accepting the offer as amended. Baker...

Katherine mailed Paul an offer with definite and certain terms and that was legal in all respects stating that it was good for 10 days. Two days later she sent Paul a letter by certified mail (time...

Planned Pethood Plus, Inc., is a veterinarian-owned clinic. It borrowed $389,000 from KeyBank at an interest rate of 9.3 percent per year for ten years. The loan had a prepayment penalty clause that...

Wolosin purchased a vegetable and dairy refrigerator case from Evans Manufacturing Corp. When Evans sued Wolosin for the purchase price, Wolosin claimed damages for breach of warranty. The sales...

Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10% interest. Cardinal also receives interest income of $35,000 from...

David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a regional sales manager for Wren Industries, a national...

Kesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she incorporates the business to form Kiwi Corporation. She transfers assets with a basis of $500,000 (fair...

The XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for total authorized capital of $1 million, consisting of ten thousand shares of common stock with a par...

Go to Case Analysis Case 18.3, Kohel v. Bergen Auto Enterprises, L. L. C., on pages 338 and 339. Read the excerpt and answer the following questions. (a) Issue: This case involved allegations of...

John Palmer and Henry Morrison formed the limited partnership of Palmer & Morrison for the management of the Huntington Hotel and filed an appropriate certificate in compliance with the limited...

Karen, a friend of yours, recently started her own business, The Bike and Boulder Company (B&B). B&B specializes in the sales of mountain bikes and rock climbing equipment. Karen is putting the...

What are the tax consequences to Euclid from the following independent events? a. Euclid bought 500 shares of common stock five years ago for $50,000. This year, Euclid receives 20 shares of common...

Kodiak agrees to sell 1,000 espresso machines to Lin to be delivered on May 1. Due to a strike during the last week of April, there is a temporary shortage of delivery vehicles. Kodiak can deliver...

Karl Horvath, Hein Rsen, and Carl Thomas formed a partnership, HRT Enterprises, to buy a manufacturing plant. Rsen and Thomas leased the plant to their own company, Merkur Steel. Merkur then sublet...

Montoro petitioned himself into voluntary bankruptcy. There were three major claims against his estate. One was made by Carlton, a friend who held Montoros negotiable promissory note for $2,500; one...

Davis Omole had good grades in high school, where he played on the football and chess teams, and went on to college. Twenty-year-old Omole was also one of the chief architects of a scheme through...

In 1954, the government of Bolivia began expropriating land from Francisco Loza for public projects, including an international airport. The government directed the payment of compensation in...

Redford is a seller of electric generators. He purchases a large quantity of generators from a manufacturer, Mallon Corp., by making a down payment and signing an agreement to make the balance of...

Julio and Milania are owners of Falcons Corporation, an S corporation. They each own 50 percent of Falcons Corporation. In year 1, Julio and Milani received distributions of $20,000 and $10,000,...

1. The SEC is often called the watchdog of corporate America. How does it assist in preventing fraud? 2. According to the summary, why did the Waste Management executives commit the fraud? On March...

Fourteen applicants for a city of Providence, Rhode Island, police academy training class each received from the city a letter stating that it was a conditional offer of employment subject to...

Suppose that the government of Brazil took possession of the cacao farms of a chocolate factory owned by a U. S. firm. What rights would the U. S. factory have? What limits exist on those rights?

Horton Automatics and the Industrial Division of the Communications Workers of America, the union that represented Hortons workers, negotiated a collective bargaining agreement. If an employees...

1. Did Porters statement that the spa was top of the line and the Cadillac of spas create any type of warranty? Why or why not? 2. Did Porter breach the implied warranty of merchantability? Why or...

Alan Vitt purchased an iBook G4 laptop computer from Apple, Inc. Shortly after the one- year warranty expired, the laptop failed to work due to a weakness in the product manufacture. Vitt sued Apple,...

The Sparrow Partnership plans to distribute $200,000 cash to its partners at the end of the year. Marjorie is a 40 percent partner and would receive $80,000. Her basis in the partnership is only...

Sarah has rented a house from Frank. The house is only two years old, but the roof leaks every time it rains. The water that has accumulated in the attic has caused plaster to fall off ceilings in...

The following information is provided for Techno-World, a company specializing in providing Internet technology assistance for clients: Perform a horizontal analysis of this balance sheet and...

Would Lyles claim of racial discrimination be for intentional (disparate-treatment) or unintentional (disparate-impact) discrimination? Explain. Amaani Lyle, an African American woman, was hired by...

Radio Station KSCS broadcast a popular music program. It announced that it would pay $25,000 to any listener who detected that it did not play three consecutive songs. Steve Jennings listened to and...

Sara Kearns went to an auction at Christies to bid on a tapestry for her employer, Nardin Fine Arts Gallery. The good news is that she purchased a Dufy tapestry for $77,000. The bad news is that it...

Assume that you have selected a random sample of 15 checks from a population of 800 checks. The checks you have selected are the following numbers: 664, 789, 650, 136, 365, 538, 800, 657, 110, 136,...

Brown made an offer to purchase Overmans house on a standard printed form. Underneath Browns signature was the statement: ACCEPTANCE ON REVERSE SIDE. Overman did not sign the offer on the back but...

Marion makes a promissory note payable to the order of Perry. Perry indorses the note by writing without recourse, Perry and transfers the note for value to Steven. Steven, in need of cash,...

Jeffrey Sammak was the owner of a contracting business known as Senaco. Sammak decided to enter the coal reprocessing business. Sammak attended the Coal Show in Chicago, Illinois, at which he met...

Carolyn, Elwood, and Isabella are involved in a real estate development. The development is a failure, and Carolyn, Elwood, and Isabella want to have their rights determined. They could bring a...

The Dukes leased land from Lillian Whatley. Toward the end of their lease, they sent Ms. Whatley a new contract, renewing the lease for three years and giving themselves the option to buy the land at...

Brandon Stroud was driving a golf car made by Textron, Inc., to transport guests at Christmas party. The golf car did not have lights, but Textron did not warn against using it on public roads at...

Glende Motor Company (Glende), an automobile dealership that sold new cars, leased premises from certain landlords. One day, fire destroyed part of the leased premises, and Glende restored the...

Vodra was employed as a salesperson and contracting agent for American Security Services. As part of his contract of employment, Vodra signed an agreement that for three years after leaving this...

Siddle purchased a quantity of fireworks from Red Devil Fireworks Co. The sale was illegal, however, because Siddle did not have a license to make the purchase, which the seller knew because it had...

Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradfords co- workers, Lisa Stander, routinely engaged in extreme sexual behavior (such as touching...

For the last eleven years, Lime Corporation has owned and operated four different trades or businesses. Lime also owns stock in several corporations that it purchased for investment purposes. The...

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon invests $130,000 of cash. They each receive 100 shares in Ion...

Which theory discussed in the chapter would enable a court to hold Hanousek criminally liable for violating the statute regardless of whether he participated in, directed, or even knew about the...

Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later, Stacy filed a voluntary petition in bankruptcy under Chapter 7. At this time, Stacy still owed...

Perform horizontal analysis of the data in the previous table to indicate any potential red flags regarding possible overstatement ofsales. FIVE-YEAR FINANCIAL DATA FOR COMPANY A YEAR I YEAR 2...

Larry, the sole shareholder of Brown Corporation, sold his stock to Ed on July 30 for $270,000. Larrys basis in the stock was $200,000 at the beginning of the year. Brown had accumulated E & P of...

Twenty-two years ago, Lorenz was a wanderer. At that time, he decided to settle down on an unoccupied, three-acre parcel of land that he did not own. People in the area told him that they had no idea...

Multiple Choice Questions 1. Candy Corp. is a C corporation that began operations in year 1. Candy Corp.'s year 1 through year 3 taxable earnings and profits (E & P) are computed as follows. Year E &...

Adam Jones, the purchasing manager for ACME Corporation, is under suspicion for committing fraud. His superiors believe he is accepting kickbacks and bribes from various vendors. As the company's...

1. Which people would you interview first and why? 2. What type of information would you seek? 3. How would you approach each of the different individuals? 4. Due to Jamess frail condition, how would...

James Davis owns a small Internet service provider business. Recently, customers have been complaining that they are overcharged and are not receiving timely customer service. Billing rates seem to...

Red Corporation wants to set up a manufacturing facility in a mid western state. After considerable negotiations with a small town in Ohio, Red accepts the following offer: land (fair market value of...

Trace Stephen Bolaris, 776 F.2d 1428, in both the INTELLICONNECT and CHECKPOINT citators. a. According to the CHECKPOINT citator, how many times has the Ninth Circuits decision been cited? b. Did the...

Margo, a calendar year taxpayer, paid $80,000 for machinery (seven-year recovery property) placed in service on August 1, 2015. a. Assuming that the machinery was the only tangible property placed in...

In February or March, Corning Glass Works orally agreed to retain Hanan as management consultant from May 1 of that year to April 30 of the next year for a present value fee of $200,000. Was this...

Black Corporation and Tom each own 50% of Tan Corporations common stock. On January 1, Tan holds a deficit in accumulated E & P of $200,000. Its current E & P is $90,000. During the year, Tan makes...

While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a business called ISys Answers which was a technology support company. During year...

Harry Ulmas made a contract to buy a new car from Acey Oldsmobile. He was allowed to keep his old car until the new car was delivered. The sales contract gave him a trade-in value of $650 on the old...

The Tinchers signed a contract to sell land to Creasy. The contract specified that the sales transaction was to be completed in 90 days. At the end of the 90 days, Creasy requested an extension of...

Lindsey Stroupes was 16 years old and a sophomore in high school. Anthony Bradley, the manager of a Finish Line, Inc.s, store in a mall, offered Lindsey a position as a sales associate that she...

Charter Bank of Gainesville had in its possession a note containing the following provision: This note with interest is secured by a mortgage on real estate, of even date herewith, made by the maker...

Client's Facts: The client found a check written out to cash in the amount of $750. The check was completely made out when he found it. He took it to the bank, signed it on the back as instructed by...

George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2014, George began working in London. He worked there until January 31, 2015, when he transferred...

Last year, Lory Corporation, a land development company, acquired land and construction equipment from its sole shareholder in a 351 transaction. At the time, the land had a basis of $790,000 and a...

Describe how an organization might combine person marketing and event marketing. Give an example.

Lessack Auctioneers advertised an auction sale that was open to the public and was to be conducted with reserve. Gordon attended the auction and bid $100 for a work of art that was worth much more....

Jennings operated a courier service to collect and deliver money. The contract with his customers allowed him a day or so to deliver the money that had been collected. Instead of holding collections...

Rex, age 55, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2014: Hospitalization insurance premiums for Rex and his dependents. The cost...

Helen, age 17, wanted to buy a Harley-Davidson Sportster motorcycle. She did not have the funds to pay cash but persuaded the dealer to sell the cycle to her on credit. The dealer did so partly...

Crane and Loon Corporations, two unrelated C corporations, have the following transactions for 2015: a. Compute the dividends received deduction for Crane Corporation. b. Compute the dividends...

Eligio Gaitan borrowed the funds to buy real property in Downers Grove, Illinois, and signed a note payable to Encore Credit Corp. Encore indorsed the note in blank. Later, when Gaitan defaulted on...

Provide the correct citation name for the following cases: The United States of America v. Thomas Terry Mary Kay Kraft, Mark Johnson, and Vanessa Hays v. Joseph Beazley and the City of Chicago Kerry...

Multiple Choice Question 1. Mark, a newspaper editor, walks into the newsroom and announces to a group of five reporters: Ill pay a $2,000 bonus to the first reporter who finds definitive evidence...

Moonbay is a home-building corporation that primarily develops retirement communities. Farmtex owns a number of feedlots in Sunny Valley. Moonbay purchased 20,000 acres of farmland in the same area...

Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2014. Gull incurred the following expenses during its first year of operations (November 1,...

A court order required John Baldassari to make specified payments for the support of his wife and child. His wife needed more money and applied for Pennsylvania welfare payments. In accordance with...

Why does this statute raise equal protection issues instead of substantive due process concerns? A state legislature enacted a statute that required any motorcycle operator or passenger on the states...

In the bleachers. Youre a prince, George! Mike exclaimed. Who else would give me a ticket to the big game? No one, Mike, no one. Let me offer my thanks. Ill buy you a beer! Ah, George said. A large...

David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agreed to disclose all information about the property on which Sirva and...

Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2014, she incorporates her business as Dove Corporation and transfers the...

Jackson signed an agreement to sell 79 acres of land to Devenyns. Jackson owned 80 acres and was apparently intending to keep for himself the acre on which his home was located. The written agreement...

Several years ago, a medical device company was charged with improperly recognizing approximately $1.5 million in revenue from bill-and-hold transactions. One distributor placed orders with the...

(True and False) 1. At the present time, approximately 25,000 members make up the Association of Certified Fraud Examiners. 2. Employee frauds constitute a greater percentage of all frauds and have...

Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relixs net deferred tax asset or net...

Mrs. Audrey E. Vokes, a widow of fifty-one years and without family, purchased fourteen separate dance courses from J. P. Davenports Arthur Murray, Inc., School of Dance. The fourteen courses totaled...

During 2016, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits...

The Jordan Keys law firm represented the Greater Southeast Community Hospital of Washington, D.C., in a medical malpractice suit against the hospital. The hospital was self-insured for the first...

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word Negotiable or...

Jill and George are married and file a joint return. They expect to have $425,000 of taxable income in the next year and are considering whether to purchase a personal residence that would provide...

For tax year 2014, determine the number of personal and dependency exemptions in each of the following independent situations: a. Leo and Amanda (ages 48 and 46, respectively) are husband and wife...

1. Evaluate this case using the three elements of the fraud triangle to identify the following: a. Potential pressures for Chris to commit fraud. b. Potential opportunities for Chris to commit fraud....

Would Saldona have been legally entitled to receive overtime pay at a higher rate? Why or why not? Rick Saldona began working as a traveling salesperson for Aimer Winery in 1979. Sales constituted 90...

A man in San Rafael County was discovered committing workers compensation fraud. He had been observed working while at the same time receiving disability benefits. Surveillance showed the man working...

An off-duty, out-of-uniform police officer and his son purchased some food from a 7- Eleven store and were still in the parking lot when a carload of teenagers became rowdy. The officer went to speak...

How do the terms vagueness, overbreadth, public forum, nonpublic forum, ban , and regulation relate to free speech jurisprudence?