WHAT IF THE FACTS WERE DIFFERENT? Suppose that after the decision in this case, a JPL employee refuses to cooperate in a NACI background check. What would be the most likely consequences? THE LEGAL...

Big CPA Firm has many partners in one of its local offices. Two of these partners are Tom, a tax partner, and Alice, an audit partner. Because of the size of the office, Tom and Alice do not know...

Steve wishes to pass his business on to his children, Tracy and Vicki, and gives each daughter a 20% partnership interest to begin getting them involved. Steve retains the remaining 60% interest....

Using the categories in the following legend, classify each transaction as a plus (+) or minus (-) on Schedule M-2 of Form 1120S. An answer might look like one of these: +AAA or -OAA. Legend AAA =...

Kenneth Thomas brought suit against his former employer, Kidder, Peabody & Company, and two of its employees, Barclay Perry and James Johnston, in a dispute over commissions on sales of securities....

Rowe was admitted to the hospital suffering from a critical illness. He was given emergency treatment and later underwent surgery. On at least four occasions, Rowes two sons discussed with the...

Bain ordered from Marcum a carload of lumber, which he intended to use in the construction of small boats for the U.S. Navy pursuant to contract. The order specified that the lumber was to be free...

Why will cyber crime always be a worldwide problem? Explain. In the world of identity theft, the Russians are out in front. The best-known young Russian techie uses the name A-Z. He created the...

Hambro Bank, Ltd., an English bank, received a cable from a Danish company, A.O., requesting that an irrevocable letter of credit be opened in favor of J. H. Rayner and Company. A.O. instructed...

The Hagues, husband and wife, owned a 160 acre tract that they decided to sell. They entered into a listing agreement with Harvey C. Hilgendorf, a licensed real estate broker that gave Hilgendorf the...

Sea Green Enterprises has 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....

During a recent IRS audit, the revenue agent decided that the Parker family used their closely held corporation, Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs...

In the current year (year 0), Amisha became a shareholder in Sultan Inc., a calendar year S corporation, by contributing $15,000 cash in exchange for stock. Shortly before the end of the year,...

Marc, age 45, sells his personal residence on May 15, 2015, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell the residence. He has lived in the residence...

What are the benefits of using a two-stage import that utilizes a data warehouse?

An appraiser valued a subsidiary of Signal Co. at between $230 million and $260 million. Six months later, Burmah Oil offered to buy the subsidiary at $480 million, giving Signal only three days to...

(Multiple choice) 1. In a fraud investigation, documents: a. Usually contain extremely valuable information. b. Are rarely used in court. c. Are not reliable sources of information. d. Are only...

Cynthia Stafford worked as an administrative professional at Gerber & Gerber, P.C. (Professional Corporation), a law firm, for more than two years. During that time, she stole ten checks payable to...

So far, victims of catfishing have had little success in the courts. Under what circumstances might a person be able to collect damages for fraudulent misrepresentation involving online impersonation?

1. Is it unfair to exempt employees to deprive them of overtime wages? Why or why not? 2. J&J argued that Smith was exempt under either the administrative employee exemption or the outside...

Refer to the facts in the preceding problem. At the beginning of the year, Mr. L could have invested his $50,000 in Business Z with an 8 percent annual return. However, this return would have been...

Suppose that two people choose to litigate a dispute. Should the law presume that if two parties are prepared to litigate, transaction costs must be high, and therefore the court should choose...

Van D. Costas, Inc. (Costas) entered into a contract to remodel the entrance of the Magic Moment Restaurant owned by Seascape Restaurants, Inc. Rosenberg, part owner and president of Seascape, signed...

1. Three decades ago, corporations and corporate directors were rarely prosecuted for crimes, and penalties for corporate crimes were relatively light. Today, this is no longer true. Under the...

Vincent (Vinny) Vineyard is a very successful physician in Temecula, California. He earns approximately $ 800,000 per year from his medical practice. His two children have graduated from college and...

In 2014 Gerald loaned Main Street Bakery $55,000. In 2015, he learned that he would probably receive only $6,400 of the loan. In 2016 Gerald received $3,000 in final settlement of the loan. Calculate...

Den Hartog, who was not disabled, was discharged from his position as headmaster at Wasatch Academy because his adult son, who suffered from bipolar affective disorder and lived with his parents on...

Use the CCH IntelliConnect Citator to evaluate the 290th revenue ruling issued in 1955. a. What is its complete Cumulative Bulletin citation? Is this revenue ruling still valid? b. What tax issue...

Sally, who is single and age 40, made deductible IRA contributions in several early years, but has not been eligible to make deductible IRA contributions for the last 5 years because she is covered...

Amalgamated Corporation, organized under the laws of State S, sends several traveling salespersons into State M to solicit orders, which are accepted only at the home office of Amalgamated...

Otmar has secured a particular high-quality ice cream franchise. The franchise agreement calls for Otmar to sell the ice cream only at a specific location; to buy all the ice cream from the...

Does the fact that Brock owned shares in Sunglow establish a conflict of interest? Why or why not? David Brock is on the board of directors of Firm Body Fitness, Inc., which owns a string of fitness...

What are the five reactions of interviewees?

ESPN held its Action Sports and Music Awards ceremony in April, at which celebrities in the fields of extreme sports and popular music such as rap and heavy metal converged. Well-known musicians Ben...

The Swiss Credit Bank issued a letter of credit in favor of Antex Industries to cover the sale of 92,000 electronic integrated circuits manufactured by Electronic Arrays. The letter of credit...

Enron, one of the largest corporations to ever file for bankruptcy protection, was number 7 on the Fortune 500 list of the largest companies in America as ranked by revenues at the time of its...

Suppose the top corporate statutory tax rate will decrease from 35% to 30% next year. The CFO of ABC Corporation wants to defer as much income as possible and asks you to prepare a detailed list of...

Holly owns stock with an adjusted basis of $2,500 and fair market value of $9,500. Holly expects the stock to continue to appreciate. Alice, Holly's best friend, recently had surgery for cancer....

This year, QIO Company generated $192,400 income from its routine business operations. In addition, it sold the following assets, all of which were held for more than 12 months. Compute QIOs taxable...

Vance was served liquor while he was an intoxicated patron of the Clear Air Force Station Non-Commissioned Officers Club. He later injured himself as a result of his intoxication. An Alaska State...

Junior owes creditor Iba $1,000, which is due and payable on June 1. Junior has been in a car accident, has missed a great deal of work, and consequently will not have the funds on June 1. Juniors...

In 1990, the city of Worcester, Massachusetts, adopted an ordinance that required rooming houses to be equipped with automatic sprinkler systems no later than September 25, 1995. In Worcester, James...

Gerald Pat Arrington was diagnosed with a brain tumor. At the time of the diagnosis, he was married to Brenda Arrington, but they were separated pending their divorce. Brenda and Pat had no children,...

In each of the following cases, determine the corporations that comprise an affiliated group. All corporations are includible corporations and have one class of stock unless otherwise indicated. a. P...

Jones bought a used car from the AHerts Car Rental System, which regularly sold its used equipment at the end of its fiscal year. First National Bank of Roxboro had previously obtained a perfected...

Bellino made a promissory note that was payable in installments and contained the provision that on default of the payment of any installment, the holder had the option to declare the entire balance...

Sierra Bravo, Inc., and Shelbys, Inc., entered into a written Waste Disposal Agreement under which Shelbys allowed Sierra to deposit on Shelbys land waste products, deleterious (harmful) materials,...

Maria has an unusually strong constitution, which produces the highest quality blood and plasma available for transfusions. She manages to stay healthy while donating blood at the hospital two or...

Carmen has computed that her average tax rate is 16% and her marginal tax rate is 25% for the current year. She is considering whether to make a charitable contribution to her church before the end...

On January 10 of the current year, Austin Corporation acquires for cash 8% of Travis Corporations single class of stock. On August 25 of the current year, Austin makes a tender offer to exchange...

Suppose you were hired by Apple to develop a marketing campaign for their latest iPhone. What would be the target market? List at least four characteristics and the corresponding market segment...

Explain what is meant by "cutoff problems" as they relate to accounts payable.

At the start of the current year, Blue Corporation (a calendar year taxpayer) holds accumulated E & P of $100,000. Blues current E & P is $60,000. At the end of the year, it distributes $200,000...

The Rollins Group produces training corporate training videos. It operates as a sole proprietorship and is 100% owned by Scott Rollins. For 2011, Rollins has gross receipts from qualified production...

The JKLM Partnership owns the following assets on October 1 of the current year: a. Which partnership items are unrealized receivables? b. Is the partnerships inventory substantially appreciated? c....

David Lucas paid $975,000 for two residential lots on the Isle of Palms near Charleston, South Carolina. He intended to build houses on them. Two years later, the South Carolina legislature passed a...

In April 2007, Stark, Ltd., applied for credit and opened an account with Quality Distributors, Inc., to obtain snack foods and other items for Starks convenience stores. For three months, Quality...

A former clergyman with a degree in counseling decides to go into business for himself. He contracts with four large corporations to provide alcohol, drug, and psychological analysis for their...

Use the CCH IntelliConnect Citator to evaluate the 1956 William George Tax Court case. a. What is the citation for the case? b. What is the title of the paragraph where George is annotated? c. What...

Mr. RG, an unmarried individual, had the following income items: Salary ..$512,100 Interest income 19,700 Dividend eligible for 20% rate . 31,000 He had $34,000 itemized deductions (none of which...

Florida land developer Lehigh would show prospective buyers Lehigh Acres and have the buyers stay at its motel. Competitor Azar would watch for the buyers, contact them at the motel, tell them that...

(Multiple Choice) 1. The most common way to overstate revenues is to: a. Record revenues prematurely. b. Abuse the cutoff line for recording revenues. c. Create fictitious revenues. d. None of the...

Emergency One, Inc. (EO), makes fire and rescue vehicles. Western Fire Truck, Inc., contracted with EO to be its exclusive dealer in Colorado and Wyoming through December 2003. James Costello, a...

While driving on Interstate 40 in North Carolina, Carroll Jett became distracted by a texting system in the cab of his tractor- trailer truck. He smashed into several vehicles that were slowed or...

In 2008, Frank relocated and purchased a home in a beautiful mountain town. The home was five years old, and Frank purchased it for $450,000. He paid $90,000 as a down payment and financed the...

The McDonald Investment Company was a corporation organized and incorporated in the state of Minnesota. The principal and only place of business from which the company conducted operations was Rush...

Brown Corporation, a calendar year taxpayer, began operations in 2012. It reports the following unadjusted AMTI and ACE for 2012 through 2015: Calculate Browns positive and negative adjustments, if...

Marcia Samms claimed that David Eccles had repeatedly and persistently called her at various hours, including late at night, from May to December, soliciting her to have illicit sexual relations with...

Jerry O. Peavy, Jr., who did not have a bank account of his own, received a draft from CNL Insurance America in the amount of $5,323.60. The draft was drawn on CNLs account at Bank South, N.A., and...

Barbara transfers to Moore Corporation $10,000 cash and machinery having a $15,000 basis and a $35,000 FMV in exchange for 50 shares of Moore stock. The machinery was used in Barbaras business,...

Almost two years ago, the DEF Partnership was formed when Demetrius, Ebony, and Farouk each contributed $100,000 in cash. They are equal general partners in the real estate partnership, which has a...

In the text of this chapter, we stated that the doctrine of stare decisis became a cornerstone of the English and American judicial systems. What does stare decisis mean, and why has this doctrine...

Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed search warrants at the restaurant...

1. What standard was at the core of the dispute in this case? 2. To whom was this standard owed, according to the United Health Workers (the defendants)? 3. Under this standard, what could the...

In July 2008 Miller Brewing Co. and Coors Brewing Co. formed a joint venture to better compete with the dominant beer manufacturer, Anheuser Busch. The venture was named "MillerCoors LLC." Under the...

Daniel, age 38, is single and has the following income and expenses in 2016. Salary income ......................................................................$60,000 Net rent income...

In 2017, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditional IRA account. The current balance of his IRA account is $160,000....

Cooks Department Store advertises that it maintains in its store a barber shop managed by Hunter. Actually, Hunter is not an employee of the store but merely rents space in it. While shaving Jordon...

For twenty years, Darlene Jespersen worked as a bartender at Harrahs Casino in Reno, Nevada. In 2000, Harrahs implemented a Personal Best program that included new grooming standards. Among other...

Earl purchases all the assets and assumes the liabilities of Buddys Market Shop. Details concerning the adjusted basis and fair market value of Buddys assets and liabilities are as follows: a. If...

Omar is the sole shareholder of Plum Corporation, which has annual taxable income of approximately $200,000. Omar formed a new solely owned corporation, Ivory Corporation, and had Plum Corporation...

1. What is consideration? 2. When a noncompete agreement is entered into before employment, would additional compensation (beyond the basic salary for the position) constitute sufficient...

Indicate whether each of the following statements about a liquidation is true or false. If the statement is false, explain why. a. Liabilities assumed by a shareholder when a corporation liquidates...

The AB Partnership pays its only liability (a $100,000 mortgage) on April 1 of the current year and terminates that same day. Alison and Bob were equal partners in the partnership but have...

Mia Eriksson was a seventeen-year-old competitor in horseback-riding events. Her riding coach was Kristi Nunnink. Eriksson signed an agreement that released Nunnink from all liability except for...

Two thugs in an alley in Manhattan held up an unidentified man. When the thieves departed with his possessions, the man quickly gave chase. He had almost caught one when the thief managed to force...

Serges is the owner of a retail meat marketing business. Without authority his managing agent borrowed $3,500 from David on Sergess behalf, for use in Sergess business. Serges paid $200 on the...

Sierra Pacific Industries purchased various areas of timber and six other pieces of real property, including a ten-acre parcel on which five duplexes and two single-family units were located. Sierra...

George S. Avery signed a letter regarding the unpaid balance on a $20,000 promissory note owed to Jim Whitworth in the form of a letter addressed to Whitworth stating: This is your note for...

Carl Kindrichs father, a member of the Long Beach Yacht Club before he died, expressed a wish to be buried at sea. The Yacht Club permitted the Kindrich family the use of one of its boats, without...

Titan Distribution, Inc., employed Quintak, Inc., to run its tire mounting and distribution operation in Des Moines, Iowa. Robert Chalfant worked for Quintak as a second-shift supervisor at Titan. He...

What should you do when you do not find anything while researching a specific source? After finding several legal sources that address the research topic, what considerations should you keep in mind...

Read and summarize Private Letter Ruling 201014040.

George, a high-bracket taxpayer, wishes to shift some of his own taxable income from corporate bonds he owns to his 25-year-old daughter, Debra, so that Debra rather than George is taxed on the...

In 2015, Wilma Ways sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 gain on the sale of business furniture and shelving, all of which was...

Sunset, Inc., a 501(c)(3) exempt organization that is classified as a private foundation, generates investment income of $500,000 for the current tax year. This amount represents 18% of Sunsets...

Congressional Airlines was highly profitable operating flights between Washington, D.C., and New York City. The directors approved a plan to offer flights from Washington to Boston. This decision...

Each year, the sale of Girl Scout cookies is the major fund-raiser for local troops. But because the organization was criticized for promoting such unhealthy food, it introduced a new cookie, Mango...

An insurer issued a settlement check on a claim brought by an injured minor that was payable to Trudy Avants attorney for minor child Joseph Walton, mother Dolores Carpenter 11762 S. Harrells Ferry...

Clay stole a car from Mooneys driveway. While driving the car down Main Street at an excessive rate of speed, Clay ran into Pages store window, causing extensive damage. Can Mooney and Page bring a...