Charlotte, the owner of a new Cadillac automobile, agreed to loan the car to Ellen for the month of February while she (Charlotte) went to Florida for a winter vacation. It was understood that Ellen,...

The Family Educational Rights and Privacy Act (FERPA) protects students rights to keep their academic records private. What duties are imposed and upon whom because of this protection of rights?...

Mary Garas, a chemist, sought work in Missouri through Kelly Services, Inc. Kelly is a staffing agency that places individuals in jobs of varying duration with other companies. Through Kelly, Garas...

In 2002, Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn, joint tenants with right of survivorship." Gordon predeceases Fawn in 2015 when the real...

Which of the following scenarios will qualify under Section 351 as a nontaxable corporate formation? For those that do not qualify, what requirement of Section 351 do they violate? a. Ginger, Mary...

Trisha, whose tax rate is 35%, sells the following capital assets in 2015 with gains and losses as shown: a. Determine Trishas increase in tax liability as a result of the three sales. All assets are...

Floyd, a cash basis taxpayer, has received an offer to purchase his land. The cash basis buyer will pay him either $100,000 at closing or $50,000 at closing and $56,000 two years after the date of...

During the current year, Bailey, a U.S. corporation, began operating overseas. It manufactures machine tools in the United States and sells them to Canadian customers through a branch office located...

Candys car collides with Cliffs, and both drivers are partly at fault. The evidence is that Candy is 25 percent responsible, for failing to stop quickly enough, and Cliff 75 percent responsible, for...

Was this relationship a partnership for a term or a partnership at will? Grace Tarnavsky and her sons, Manny and Jason, bought a ranch known as the Cowboy Palace in March 2006, and the three verbally...

1. Is Sgt. Kelly making best use of her time? 2. How can Sgt. Kelly address the specific needs of the problem investigators? 3. Should Sgt. Kelly stop reviewing cases and trust that her investigators...

Douglas Hoflin was the director of the Public Works Department for Ocean Shores, Washington. During a period of seven years, the department purchased 3,500 gallons of paint for road maintenance. As...

Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income. a. Jersey Inc. generated $3.9 million income this year. Compute Jerseys income tax and determine its...

According to the rule adopted by the majority of courts to determine accountants liability to third parties, could Chase be liable to Superior? Superior Wholesale Corporation planned to purchase...

The Laborers International Union of North America, Local 578, and Shaw Stone & Webster Construction, Inc., were parties to a collective bargaining agreement that covered workers at the company. The...

What are the required elements of arson? Tom breaks into a neighbor's barn, sets off 20 sticks of dynamite, and blows up the barn. The barn does not catch fire,

1. What is the public policy behind giving privilege to employer references? 2. Is it fair that Belanger has a permanent bad reference? Would you hire him? Swift operates a trucking company and hired...

Barta entered into a written contract to buy the K&K Pharmacy, located in the local shopping center. Included in the contract was a provision stating that this Agreement shall be contingent upon...

Sandra and Thomas McGuire entered into a purchase and sale agreement for Beccas Boutique with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, with...

Assuming that the policy is valid, does Matlins situation fall within the terms of the disability policy? Provident Insurance, Inc., issued an insurance policy to a company providing an employee,...

On January 1, 2014, Sean purchased an 8%, $100,000 corporate bond for $92,277. The bond was issued on January 1, 2014, and matures on January 1, 2019. Interest is paid semiannually, and the effective...

Kirkland conveyed a farm to Adland to have and to hold for and during his life and upon his death to Rubin. Some years thereafter, oil was discovered in the vicinity. Adland thereupon made an oil and...

Mr. ZJ owns a sole proprietorship. The business assets have a $246,000 aggregate adjusted basis. According to an independent appraisal, the business is worth $400,000. Mr. ZJ transfers his business...

Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $250,000 six years earlier and is now subject to a $75,000 liability. During the current year, Tracy...

George, a limited partner in the EFG Partnership, has a 20% interest in partnership capital, profits, and losses. His basis in the partnership interest is $15,000 before accounting for events of the...

James sells and delivers to Gerald on June 1 certain goods and receives from Gerald at the time of delivery Geralds check in the amount of $9,000 for the goods. The following day, Gerald is...

Shepherd-Will made a contract to sell Emma Cousar: 5 acres of land adjoining property owned by the purchaser and this being formerly land of Shepherd-Will, Inc., located on north side of Highway 223....

Cindy has a $4,000 basis in her partnership interest before receiving a nonliquidating (current) distribution of property having a $4,500 basis and a $6,000 FMV from the CDE Partnership. Cindy has a...

In the current year, Dylan earned taxable and tax-exempt interest from the following investments. Investment.......................................... Interest Income 10-year municipal bond (issued...

Did Joan have the right to convey the Shelburne farm to a trust that she had established? Does the property belong to the trust or to Mr. Gagnon?

Give examples of areas covered by federal laws. Give examples of areas covered by city ordinances. What are the limitations on these two sources of laws? What could the laws at these two levels not...

Bennies Restaurant chain routinely hires Hispanics, but it only assigns them to the lower-paying jobs as kitchen help, rather than as higher-paid servers, salad bar helpers, or managers. Bennies says...

A newspaper printing press system is more than one hundred feet long, stands four or five stories tall, and weighs 2 million pounds. Only about ten of the systems are sold each year in the United...

Charlene owns a 70% interest in Maupin Mopeds, which is organized as a partnership. She wants to open another business and needs office space for it. She has Maupin distribute a building worth...

Read and brief the following cases: a. Fulcher, Douglas R., T. C. Summary Opinion 2003-157 b. The Boeing Company and Consolidated Subs., 91 AFTR2d 2003-1088 (123 S. Ct. 1099)

The Kilp Sisters Trust is required to distribute $60,000 annually equally to its two income beneficiaries, Clare and Renee. If trust income is not sufficient to pay these amounts, the trustee can...

Anne works for a CPA firm as a secretary/receptionist and earns approximately $27,000 per year. About five years earlier, she had completed 70 credit hours at State U. To increase her career...

Joe and joan divorce during the current year. Joan receives custody of their three children. Joe agrees to pay $5,000 of child support for each child. Assuming no written agreement, who will receive...

Pam, Sergei, and Mercedes are all one-third partners in the capital and profits of Oak Grove General Partnership. Partnership debt is allocated among the partners in accordance with their capital and...

Acciai Speciali Terni USA, Inc. (AST), hired a carrier to ship steel sheets and coils from Italy to the United States on the M/V Berane. The ships receipt for the goods included a forum-selection...

Meyer, Knapp, and Cavanna establish a partnership to operate a window-washing service. Meyer contributes $10,000 to the partnership, and Knapp and Cavanna contribute $1,000 each. The partnership...

Nike, Inc., mounted a public relations campaign in order to refute news media allegations that its labor practices overseas were unfair and unlawful. The campaign involved the use of press releases,...

Many applications of law primarily affect individuals, such as buying or selling personal property. Critique the amount and kinds of protection provided to individuals and whether you think that the...

David Siegel maintained a checking account with the New England Merchants National Bank (Bank). On September 14, Siegel drew and delivered a $ 20,000 check payable to Peter Peters. The check was...

Josh contributes $5,000 toward the support of his widowed mother, aged 69, a U.S. citizen and resident. She earns gross income of $2,000 and spends it all for her own support. In addition, Medicare...

Custom Copies, Inc., in Gainesville, Florida, is a copy shop, reproducing and distributing, for profit, on request, material published and owned by others. One of the copy shops primary activities is...

Honk, Inc., a U.S. corporation, purchases weight-lifting equipment for resale from HiDisu, a Japanese corporation, for 60 million yen. On the date of purchase, 80 yen is equal to $1 U.S. (80:$1). The...

Your employer, Let's-Get-It-Done, has a history of multiple employee disputes. These disputes range from claims of illegal discrimination to general complaints of worker dissatisfaction with...

Michael earned $20,000 at the K-M Resort Golf Club during the summer prior to his senior year in college. He wants to make a contribution to a traditional IRA, but the amount is dependent on whether...

Large damages awards in tort litigation have to be paid by someone. If the defendant is insured, then insurance companies foot the bill. Ultimately, though, high insurance rates are passed on to...

Smythe wrote to Lasco Dealers inquiring about the price of a certain freezer. Lasco wrote her a letter, signed by its credit manager, stating that Smythe could purchase the freezer in question during...

Buford sells an apartment building for $720,000. His adjusted basis is $500,000 for regular income tax purposes and $550,000 for AMT purposes. Calculate Buford's: a. Gain for regular income tax...

Dillards customer brought in a pair of moderately expensive dress shoes, expressing a desire to return them because they just werent quite right. As the manager processed the order she checked inside...

Equation 3.9 indicates that the choice as to whether to convert from a deductible IRA into a Roth IRA when the taxpayer expects his future tax rate to decline depends on the relative magnitude of the...

Professor Andy Accrual works for Mega State University (MSU). The state has negotiated a set of special airfares with various airlines for state employees to use when traveling on state business....

The following information relates to two married couples: Compute the 2015 tax due or refund due for each couple. Assume that the itemized deductions have been reduced by the applicable floors....

After their divorce, Brian Bermudez and Amanda Schmidt shared custody of their son. Schmidt suspected Bermudez of abusing the child, so she refused to let him visit. Bermudez filed a petition...

(Multiple Choice) 1. Conversion investigations focus on how suspects: a. Had opportunities to steal. b. Had motives to commit fraud. c. Spent stolen money. d. Committed the actual theft. 2. Which of...

Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...

Century Cleaning, Inc. provides cleaning services in Atlanta, Georgia. It is not a member of a controlled or an affiliated group. Century reports the following results for the current year: Taxable...

What are some of the things Brian did wrong during this interview? It is early Monday morning, and Brian is preparing to conduct his first interview as a fraud examiner. He is to meet with Sue, a...

Allie, who was an accounting major in college, is the controller of a medium-size construction corporation. She prepares the corporate tax return each year. Due to reporting a home construction...

Jo and Velma are equal owners of the JV Partnership. Jo invests $500,000 cash in the partnership. Velma contributes land and a building (basis to her of $125,000, fair market value of $500,000). The...

Your client is facing a possible personal holding company tax or accumulated earnings tax in 2015. Advise the client as to the total tax due and what the effective tax rate will be for this...

Review thecompletedC corporation, partnership, and S corporation tax returnspresented inAppendixB. List three major tax reporting similarities and three major tax reporting differences in either...

The town of Newport obtained a corporate MasterCard that was given to the town clerk for purchasing fuel for the town hall. The town clerk used the card for personal restaurant, hotel, and gift shop...

Larsen Jewelers sold a necklace to Conway on a layaway plan. Conway paid a portion of the price and made additional payments from time to time. The necklace was to remain in the possession of Larsen...

Moore ran a bakery in Santa Rosa, New Mexico. His business was wholly intrastate. Meads Fine Bread Co., his competitor, engaged in an interstate business. Meads cut the price of bread in half in...

Dr. Edwin G. Hyde, a board-certified anesthesiologist, applied for permission to practice at East Jefferson Hospital in Louisiana. An approval was recommended for his hiring, but the hospitals board...

How does a vulnerability chart help coordinate an investigation of suspected fraud?

1. The court held that the Massachusetts statute discriminated against out- of- state wineries by design (intentionally). How can a court determine legislative intent? 2. Suppose that most small...

On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the...

Freda is a cash basis taxpayer. In 2016, she negotiated her salary for 2017. Her employer offered to pay her $21,000 per month in 2017 for a total of $252,000. Freda countered that she would accept...

Dutch, Bill, and Heidi were equal partners in a lawn care business. Bill and Heidi wanted to borrow money from the bank to buy more trucks and expand the business. Dutch was dead set against the...

Mrs. Singer owns a profitable sole proprietorship. For each of the following cases, use a Schedule SE, Form 1040, to compute her 2014 self-employment tax and her income tax deduction for such tax. a....

As part of an investigation into illegal narcotics activity, police officers went to the home of Cindy Lou Cates and interviewed her about her involvement in buying and selling narcotics. Cates had...

On January 30, 2015, Amy sells land to Bob for a stated price of $200,000. The full $200,000 is payable on January 30, 2017. No interest is stated. Amy, a cash-method taxpayer, purchased the land in...

Elvers sold a parcel of real estate, describing it by its legal description and making no mention of any improvements or fixtures on it. The land had upon it a residence, a barn, a rail fence, a...

Bruce Marecki, an employee of Crystal Rock Spring Water Company, attended a seminar sponsored by the company at a Ramada Inn. At the seminar, he drank several beers. After the seminar ended, he was...

Jasmine Gregory is a 20% member in Sparrow Properties LLC, which is a lessor of residential rental property. Her share of the LLC's losses for the current year is $100,000. Immediately before...

Alan inherited $100,000 with the stipulation that he "invest it to financially benefit his family." Alan and Alice decided they would invest the inheritance to help them accomplish two financial...

Hazelwood School District, located in Sleepy Hollow Township, is being sued by several teachers who applied for teaching positions within the school district but were rejected. The plaintiffs, who...

Paul Gett is a well-known, wealthy financial expert. Adam Wade, Getts friend, tells Timothy Brown that he is Getts agent for the purchase of rare coins and shows Brown a local newspaper clipping...

Suppose that after his back injury in 2008, Manny sent his mother and brother a notice indicating his intent to withdraw from the partnership. Can he still be held liable for the debt to Als Feed...

When Deer Valley Resort Co. (DVRC) was developing its ski resort in the Wasatch Mountains near Park City, Utah, it sold parcels of land in the resort village to third parties. Each sales contract...

Brianna Kriefall, a child, died after she ate meat at a Sizzler restaurant that was later found to contain E. coli. Her family brought suit against Sizzler USA to recover for the loss of their...

Freya is an accountant working on the tax return of a high- tech client. After reviewing the work papers, she discovers that there is a pattern of double billing the U. S. Navy for various projects...

For each of the following independent fact patterns, indicate whether a termination of the partnership has occurred for tax purposes. Assume that no other partnership interests are sold either one...

How does consumer fraud affect the economies of entire countries?

Upon losing his job as a plant manager in Quincy, Massachusetts, Anthony incurs $6,200 in job search expenses. Having no success in finding new employment in the same type of work, Anthony moves to...

Your friend Hui is an investor in bitcoin. Indicate whether and how she is subject to Federal income taxation in the following circumstances a. Earns $1,000 in bitcoin from mining. b. Purchases...

In 1969 a deed for land in Pitt County was executed and delivered by Joel and Louisa Tyson unto M. H. Jackson and wife Maggie Jackson, for and during the term of their natural lives and after their...

Donaldson sold plumbing supplies. The St. Paul-Mercury Indemnity Co., as surety for him, executed and delivered a bond to the state of California for the payment of all sales taxes. Donaldson failed...

Lawrence Small formed Seatwo LLC to operate a Burger King restaurant in Wyoming. Seatwo was capitalized by $500 of contributions from its three members: Small, $500; his wife, $125; one of their...

Of the 9,500 shares of Favor Corporation stock outstanding, Olsen owns 6,100 shares. Unrelated parties own the remaining shares. To bolster its stock price, Favor plans to reduce the total number of...

A gasoline-powered lawn mower that had been used earlier to cut grass was left unattended next to a water heater that had been manufactured by Sears. Expert testimony was presented to demonstrate...

Mirage Investments Corp. (MIC) planned a tender offer for the shares of Gulf States International Corp. (GSIC). Archer, an officer of MIC, placed purchase orders for GSIC stock through the New York...

Frosty Land Foods shipped a load of beef from its plant in Montgomery, Alabama, to Scott Meat Co. in Los Angeles via Refrigerated Transport Co. (RTC), a common carrier. Early Wednesday morning,...

The officers of an oil refiner, trader, and hedger based in New York were arrested by the FBI for committing massive financial statement fraud. The executives used many schemes to perpetuate the...

Bruce Albea contracting, Inc., was the general contractor on a state highway project. Albea subcontracted the asphalt work to APAC-Southeast, Inc. Their contact prohibited any delegation without...