Barnes, the owner and operator of Blackacre, decided to cease farming operations and liquidate his holdings. Barnes sold fifty head of yearling Merino sheep to Billing and then sold Blackacre to...

Maurice Allred is going to purchase either the stock or the assets of Jewel Corporation. All of the Jewel stock is owned by Charley. Maurice and Charley agree that Jewel is worth $700,000. The tax...

You are hired as a corporate accountant for Ryco Industries, Inc., a public company with shares traded on the New York Stock Exchange. The company has enjoyed consistently higher earnings each...

Mike Moses purchased a mobile home, including installation, from Gary Newman. Newman delivered the home to Mosess lot. Upon inspection of the home, Mosess finance found a broken window and water...

(True and False) 1. Identity theft is the largest type of consumer fraud. 2. Identity theft can result in an individuals loss of credit. 3. The best way to prevent a fraudster from establishing a...

Blue Corporation and Fuchsia Corporation are engaged in a contract negotiation over the use of Blue's trademarked name, Date Site For Seniors. For a one-time payment of $45,000, Blue licensed Fuchsia...

How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are $90,000, and he incurs $30,000 in expenses....

The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In the current year, the trust earns $3,200 in taxable interest and $8,000 in tax exempt interest. In addition, the trust...

Hines stored her furniture, including a grand piano, in Arnetts warehouse. Needing more space, Arnett stored Hiness piano in Butlers warehouse next door. As a result of a fire, which occurred without...

New Hampshire adopted a tax law that in effect taxed the income of nonresidents working in New Hampshire only. Austin, a nonresident who worked in New Hampshire, claimed that the tax law was invalid....

John Iwen sued U.S. West Direct because of a negligently constructed yellow pages advertisement. U.S. West Direct moved to stay litigation and compel arbitration under the yellow pages order form,...

The Crafts home was supplied with gas by the city gas company. Because of some misunderstanding, the gas company believed that the Crafts were delinquent in paying their gas bill. The gas company had...

Company K has a 30 percent marginal tax rate and uses a 7 percent discount rate to compute NPV. The company started a venture that will yield the following before-tax cash flows: year 0, $12,000;...

Firm Q and Firm R conduct business in a foreign country that imposes a 3 percent VAT. Firm Q produces entertainment videos at a $6 cost per unit and sells the videos to Firm R for $9 per unit. Firm R...

The effective tax rate on gain of $1 million resulting from the sale of qualified small business stock obtained in 2005 in an initial public offering and held more than five years is 14%. Do you...

The plaintiff, while driving a van manufactured by the defendant, was struck in the rear by another motor vehicle. Upon impact, the plaintiffs head was jarred backward against the rear window of the...

The University of Georgia Athletic Association (UGAA) brought suit against beer wholesaler Bill Laite for marketing Battlin Bulldog Beer. The UGAA claimed that the cans infringed its symbol for its...

The taxpayer is an antiques collector and is going to sell an antique purchased many years ago for a large gain. The facts and circumstances indicate that the taxpayer might be classified as a dealer...

To: [Your name] From: Supervising Attorney Re: Mad Dog Review v. Jonesville; First Amendmentfreedom of expression We represent Mad Dog Review, a local rap band. As you know, this is a controversial...

Big Corporation currently owns 25% of Small, Inc. Big acquired this stock two years ago by exchanging $375,000 of its preferred stock with Allie, one of the original owners of Small. Big had tried to...

On December 31, 2014, Alpha Corporation, valued at $10 million, acquired BetaCo when BetaCo was valued at $5 million. BetaCo holds a capital loss carryforward of $220,000 and excess business credits...

Compute consolidated taxable income for the calendar year Blue Group, which elected consolidated status immediately upon creation of the two member corporations in January of year 1. All recognized...

Mr. Ms salary was $177,000, and Mrs. Ms salary was $114,000. They had no other income items, no above-the-line or itemized deductions, and no dependents. a. Compute their tax on a joint return. b....

Debate the following proposition: All corporate formation transactions should be taxable events.

Favorite Foods Corp. sold its food to stores and distributors. It established a quantity discount scale that was publicly published and made available to all buyers. The top of the scale gave the...

With the objectives of preventing crime, maintaining property values, and preserving the quality of urban life, New York City enacted an ordinance to regulate the locations of commercial...

Use the Checkpoint Federal Practice Area Indexes to answer the following questions: a. Which federal primary source materials have indexes? b. In the FTC Topic Index, determine which paragraph(s)...

Smith was approached by a man who introduced himself as Brown of Brown & Co. Brown was not known to Smith, but Smith asked Dun & Bradstreet for a credit report and obtained a very favorable report on...

1. What did the court mean when it stated that strict product liability laws are not fully congruent with classical tort law? 2. Why would the enforcement of the exculpatory clause in this case...

Mike and Melissa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $120,000), and Melissa contributes the assets of her sole...

Dan is unhappy with the service he received from Roto-Rooter Corporation, and has established a domain name called www.rotorooterscam.com. The Web site offers critical commentary about Roto-Rooter...

WHAT IF THE FA CTS WERE DIFERENT? Suppose that searches of the Florida and New York records had revealed that Regions was a secured creditor of Camtech and Avstar Fuel. Would the result have been...

State A enjoys a prosperous economy, with high real estate values and compensation levels. State B's economy has seen better days-property values are depressed, and unemployment is higher than in...

Melissa Faraj owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton...

In the current year, Dickinson, Inc., reports an effective tax rate of 36%, and Badger, Inc., reports an effective tax rate of 21%. Both companies are domestic and operate in the same industry. Your...

St. Charles Drilling Co. contracted with Osterholt to install a well and water system that would produce a specified quantity of water. The water system failed to meet its warranted capacity, and...

Washington purchased an automobile from Smithville Motors. The contract called for payment of the purchase price in installments and contained the defense preservation notice required by the Federal...

What organization has the authority to ban the sale of scooters based on safety concerns? Leota Sage saw a local motorcycle dealers newspaper advertisement for a MetroRider EZ electric scooter for...

(Multiple Choice) 1. Which of the following is true regarding fraud? a. It is easily identified. b. It is seldom observed. c. When a fraud occurs, there is no question whether or not a crime has been...

(True and False) 1. Fraud auditors should be equally concerned with liabilities being overstated as well as understated. 2. Proactive searching for analytical symptoms means that we are looking for...

1. McCutchon wrote a check payable to cash while he was in a supermarket. Before he got to the cashier, he realized that he had lost the check. Is this a bearer instrument, payable to any holder? 2....

In 1998, Big Skye Partnership paid $695,500 for a Christmas tree farm in northern Arizona. In 1991, over 300 farms and ranches in the area were granted allocations of water from a newly completed...

Johnson, president of the First National Bank of A, believes that it is appropriate to employ only female tellers. Hence, First National refuses to employ Ken Baker as a teller but does offer him a...

Should the common-law maxim Ignorance of the law is no excuse apply to an immigrant who speaks little English and was not educated in the United States? How about for a tourist who does not speak...

ABCO (Abbott Development Company) made a note payable to Western State Bank of Midland. The FDIC took over Western States operations after it failed. ABCO had defaulted on the note, after which the...

Are there any downsides to live chats with bankruptcy courts? If so, what are they?

1. How do the requirements for negotiation of an instrument with a blank qualified indorsement, as was used in this case, differ from those for negotiation of an instrument with a special qualified...

Cordeio, Inc. is a CFC for the entire tax year. Vancy Company, a U.S. corporation, owns 75% of Cordeio's one class of stock for the entire year. Subpart F income is $450,000, and no distributions...

On February 10, 2015, Gail purchases 20 calls on Red Corporation for $250 per call. Each call represents an option to buy 100 shares of Red stock at $42 per share any time before November 25, 2015....

In 2014, Maggy (34 years old)is an employee of YBU Corp. YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee...

On December 21, 1988, Pan Am Flight 103 exploded 31,000 feet in the air over Lockerbie, Scotland, killing all 259 passengers and crew on board and 11 people on the ground. Among those killed was...

On January 5, Brian drafts a check for $3,000 drawn on Southern Marine Bank and payable to his assistant, Shanta. Brian puts last years date on the check by mistake. On January 7, before Shanta has...

In 2007, Braden Loeser, a twenty-one-year old college student, was arrested in Springfield, Oregon, for driving under the influence of alcohol (DUI). Loeser was informed of his right to apply for...

Gloria sells land that she held as an investment for $2,000 to the Lacy for Senate Campaign Committee. Gloria purchased the land twenty years ago for $2,000. The chairman of the Lacy for Senate...

Jackson Corporation prepared the following book income statement for its year ended December 31, 2015: Information on equipment depreciation and sale: ¢ Acquired March 3, 2013 for $180,000...

During 2016, Gary earned $57,000 as an executive. Gary, who is single, supported his half sister, who lives in a nursing home. Gary received the following interest: $400 on City of Los Angeles bonds,...

Following a visit to her hometown of Coalinga, Cynthia wrote An Ode to Coalinga (Ode) and posted it in her online journal on MySpace.com. Her last name did not appear online. Her page included her...

Grace Lang was employed as a waitress at the Pancake House in Grand Bay, Alabama. While working the morning shift on March 7, 1999, one of Grace's customers left her a Florida lottery ticket as a...

Sam wants to help his brother, Lou, start a new business. Lou is a capable auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be...

1. Battery is unpermitted, unprivileged, intentional contact with anothers person. In a physician-patient relationship, how does a physician receive consent to touch the body of a patient? 2. Could...

Ball e- mails Sullivan and inquires how much Sullivan is asking for a specific forty- acre tract of land Sullivan owns. Sullivan responds, I will not take less than $ 60,000 for the forty- acre...

Thomas Huskin and his wife entered into a con-tract to have their home remodeled by House Medic Handyman Service. Todd Hall signed the contract as an authorized representative of House Medic. It...

Sergio owns 200 shares of Palm Corporation common stock, purchased during the prior year: 100 shares on July 5, for $9,000; and 100 shares on October 15, for $12,000. When Sergio sells 50 shares for...

LaSalle Bank loaned $8 million to Cypress Creek to build an apartment complex. The loan was secured by a mortgage. Cypress Creek hired contractors to provide concrete work, plumbing, carpentry, and...

Brewster manufactured plastic bottles. Dial made personal care products at many plants around the country, including one in Salem, Virginia. The companies agreed that Dial would purchase from...

Zeta Corporation is interested in acquiring Tau Corporation through a "Type A" reorganization on January 2 of the current year. Zeta is valued at $50 million and generates taxable income of $5...

Assume in Problem 26 that Julio has a capital loss carryover of $50,000 in the current tax year. Julio has no other capital gain transactions during the year. What amount of the capital loss may...

Amy owns a vacation cottage in Maine. She predicts that the time during which the cottage will be used in the current year is as follows: By Amy, solely for vacation and vacationing the rest of the...

Now assume that Beaver had stated that she was eighteen years old at the time that she signed the exculpatory clause. How might this affect Beavers ability to disaffirm or ratify the contract? Renee...

AstroStar, Inc., has a board of directors consisting of three members (Eckhart, Dolan, and Macero) and has approximately five hundred shareholders. At a regular board meeting, the board selects...

Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. The company has five hundred nonunion employees. Representatives of these employees are requesting a...

What was the topic of the Federal Reserve notice issued on January 2, 2004

Indicate whether each of the following statements is true or false by writing T or F in the answer column. 1. A tort is a violation of the rights of a particular person. 1. __________ 2. Tort law is...

This chapter discusses five reasons for having administrative agencies. Give an example for each reason.

Making the Decision Albert and Barbara wish to enter into the business of manufacturing fine furniture. Which form of business organization would you recommend in each of the following situations?...

Yvonne and Larry plan to begin a business that will grow plants for sale to retail nurseries. They expect to have substantial losses for the first three years of operations while they develop their...

Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this agreement: "Binding Contract: Niels agrees to sell one of his three...

1. Was MaloneCo justified in relying on Ralph and Elies assurances that CenterRock was continuing to pursue the original contract? 2. The court requires a connection or relationship for...

Clifton Corporation acquired all of the outstanding Gillion stock on January 1, 2014, for $2,400,000. The parties immediately elected to file consolidated Federal income tax returns. Gillion reported...

Company Y began business in February 2015. By the end of the calendar year, it had billed its clients for $3.5 million of services and had incurred $800,000 of operating expenses. As of December 31,...

Lynn, age 45, is single and has no dependents. Her income and expenses for the current year are reported as follows. Income Salary .......................................................................

Daniel and Katherine Balk asked Jirak Construction, LLC, to remodel their farmhouse in Lawler, Iowa. Jirak provided the Balks with an initial estimate of $45,975 for the cost. Over the course of the...

How does a response hotline for anonymous tips help to prevent fraud?

1. Do you believe TAMU should be held vicariously liable under the doctrine of respondeat superior in this case? Why or why not? 2. Assume that the directors were independent contractors rather than...

Through a "Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31. At the time the 90% was acquired, RetrieverCo was...

Mr. Vernon is the sole shareholder of Teva. He also owns the office building that serves as corporate headquarters. Last year, Teva paid $180,000 annual rent to Mr. Vernon for use of the building....

(Multiple choice) 1. Using a subtly different Internet host name to mimic another business is known as: a. Spoofing. b. Sniffing. c. Web-visit hijacking. d. Falsified identity. 2. Passwords and...

Charles Byrd was in a minimum- security jail awaiting trial. A team of sheriffs deputies took several inmates into a room for a strip search without any apparent justification. Byrd was ordered to...

Brendan and Theresa are married and have three children in college. Their twin daughters, Christine and Katlyn, are freshmen and attend the same university. Their son, Kevin, is a graduate student....

Reggie Bluiett worked at the Silver Slipper Gambling Hall and Saloon. She received her weekly paycheck made out to her from the Silver Slipper. She indorsed the check in blank and left it on her...

Between 1988 and 1992, Lorna Nys took out thirteen student loans, totaling about $30,000, to finance an associate of arts degree in drafting from the College of the Redwoods and a bachelor of arts...

You are the owner of a privately owned, moderate sized company. The business was founded over 20 years ago and has experienced impressive growth and profitability. The only frustrating thing,...

Wolf, King, and others sold business opportunities in vending machines by taking out ads in newspapers throughout the country. When individuals responded, telemarketers called "fronters" would tell...

Sue is 30 years old and is president and a 51% shareholder of C Corporation. She informs you that C Corporation has 10 shareholders, all unrelated. Other than herself, no shareholder owns more than...

Shipper was ill for 14 months. His wife did not take care of his affairs carefully, nor did she examine his bank statements as they arrived each month. One of Shippers acquaintances had forged his...

Hacienda Farms, Ltd., was organized as a limited partnership with Ricardo de Escamilla as the general partner and James L. Russell and H. W. Andrews as limited partners. The partnership raised...

During an interview with an IRS official on Dateline, the interviewer asks, "So how do you decide which Forms 1040 get audited and which do not?" How should the IRS official respond, taking into...

After TNT Motor Express hired Joseph Bruce Drury as a truck driver, it ordered a background check from Robert Arden & Associates. TNT provided Drurys social security number and date of birth, but not...

BSH Home Appliances Corp. makes appliances under the Bosch, Siemens, Thermador, and Gaggenau brands. To make and market the Pro 27 Stainless Steel Range, a restaurant-quality range for home use, BSH...

The defendants are approximately 80 tenants of a 300 unit luxury apartment building on the upper east side of Manhattan. The monthly rents in the all glass enclosed building, which won several...