Mona found a wallet on the floor of an elevator in the office building where she worked. She posted several notices in the building about finding the wallet, but no one appeared to claim it. She...

CEO Bernard Ellis sent a memo to shareholders of his Internet-related services business some four days before the expiration of a lock-up period during which these shareholders had agreed not to sell...

In May, Patricia Allen left her automobile on the shoulder of a road in the city of Erehwon after the car stopped running. A member of the Erehwon city police department came upon the car later that...

Jays Flying Advertising, LLC, contracted with Big Bobs Burger restaurant to fly an advertisement above the Connecticut beaches. The advertisement offered $5,000 to any person who could swim from the...

Had the dealer engaged in deceptive advertising? Why or why not? Leota Sage saw a local motorcycle dealers newspaper advertisement for a MetroRider EZ electric scooter for $1,699. When she went to...

PRM Energy Systems, Inc. (PRM), owned technology patents that it licensed to Primenergy to use and to sublicense in the United States. The agreement stated that all disputes would be settled by...

Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in...

At his death, Andrew was a participant in his employers contributory qualified pension plan. His account reflects the following: Employers contribution ..$1,000,000 Andrews contribution 800,000...

Suppose that Executive Aviation discovers that Air Ruidoso has sufficient assets in one of its bank accounts to pay the past-due amount. How might Executive Aviation attempt to obtain access to these...

You landed a summer internship with a company that processes dental insurance claims for insurance companies. The company receives the insurance claims from dental offices, achieves authorization...

A Question of Ethics New Orleans Paddlewheels, Inc. (NOP), is a Louisiana corporation formed in 1982, when James Smith, Sr., and Warren Reuther were its only share holders, with each holding 50...

Tom, Angela, and Peter want to become co-owners of a business enterprise. Compare their personal liability for the debts incurred by the enterprise if they organize as: a. A general partnership. b. A...

Kurt Perschke was a grain dealer in Indiana. Perschke phoned Ken Sebasty, the owner of a large wheat farm, and offered to buy 14,000 bushels of wheat for $ 1.95 per bushel. Sebasty accepted the...

Hanjuan Jin, a citizen of the Peoples Republic of China, began working at Motorola in 1998. She worked as a software engineer in a division that created proprietary standards for cellular...

Baxter manufactures electric hair dryers. Julie purchases a Baxter dryer from her local Ace Drugstore. Cox, a friend and guest in Julies home, has taken a shower and wants to dry her hair. Julie...

Rebecca holds 100 shares of Gotchas stock that she purchased for $1,000 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and...

Assume that Garner had filed his action in a Nevada state court. Would that court have personal jurisdiction over Foreman or his manager? Explain. Stan Garner resides in Illinois and promotes boxing...

Jacobson, a Michigan resident, sued Hasbro Corporation for negligence after one of Hasbro's truck drivers fell asleep and ran his semi off the road and into Jacobson's house, causing structural...

Cornell purchased a 15-year, $25,000 bond from Fulvous Corporation for $20,000 eight years ago. Interest of $2,300 has been amortized over the eight years and added to Cornell's bond basis. In the...

Thom Jones (SSN 000-00-1111) is an unincorporated manufacturer of widgets. He uses the LCM method to value his inventory and reports the following for 2014: Complete Thoms 2014 Form 4562 and Schedule...

During the current year, Ron and Anne sold the following assets: a. Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales,...

A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming...

Scott, manufacturer of a carbonated beverage, entered into a contract with Otis, owner of a baseball park, whereby Otis rented to Scott a large signboard on top of the center field wall. The contract...

The Minnesota adoption statute requires that any agency placing a child for adoption make a thorough investigation and not give a child to an applicant unless the placement is in the best interests...

1. What agency relationship exists between Toms and Parker? 2. If an agency relationship exists, when was a fiduciary duty created and what subduties apply to this case? Explain. 3. Is Parkers...

Maul, Inc., a calendar year S corporation, incurred the following items. Tax-exempt interest income ............. $ 7,000 Sales ....................... 140,000 Depreciation recapture income...

Jack Smith was required by his bank to obtain two sureties for his line of credit of $100,000. Ellen Weiss has agreed to act as a surety for $50,000, and Allen Fox has agreed to act as a surety for...

In 1992, Donna Smith telephoned Clark, the manager of Penbridge Farms, in response to an advertisement Clark had placed in the July issue of the Emu Finder about the availability for sale of proven...

Alan Gellen is the facilities manager for the city of Milwaukee and makes all final decisions on purchasing items such as chairs, lights, and other supplies and materials. Alan also makes the final...

Mrs. O is negotiating to purchase a tract of land from DC Company, which is a calendar year taxpayer. DC bought this land six years ago for $480,000. According to a recent appraisal, the land is...

Casper and Cecile are divorced this year. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the...

Gerrit is a former employee of ABC Auto Repair Co. He enters ABCs repair shop, claiming that the company owes him $800 in back wages. Gerrit argues with ABCs general manager, Steward, and Steward...

LO Ventures, LLC, doing business as Reef point Brew house in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an...

Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexanders wealthy uncle, Michael, decides to give Alexander a car for Christmas. In...

Ken Sulejmanagic, aged 19, signed up for a course in scuba diving taught by Madison at the YMCA. Before the instruction began, Ken was required to sign a form releasing Madison and the YMCA from...

Milena Weintraub and Larry Griffith were shareholders in Grand Casino, Inc., which operated a casino in South Dakota. Griffith owned 51 percent of the stock and Weintraub 49 percent. Weintraub...

Armeen ran a stop sign and hit the Smiths car, killing their child. He had $1.5 million in insurance. The Smiths offered to settle the case for that amount, but Liberty State, Armeens insurance...

Edwin Edwards and Karen Davis owned EEE, Inc., which owned three convenience stores, all of which sold gasoline. Reid Ellis delivered to the three convenience stores $26,675.02 worth of gasoline for...

Eclipse, Inc., a qualifying small taxpayer, has total gross receipts of $3,600,000 and DPGR of $2,160,000. In addition Eclipse has cost of goods sold of $1,000,000 and advertising and administrative...

James Schuster was a sole proprietor doing business as (d. b. a.) Diversity Heating and Plumbing (Diversity Heating). Diversity Heating was in the business of selling, installing, and servicing...

1. Woodbine had petitioned the INS to allow Filipinos as RNs, committing to pay them the same wages, but did not do so. What factors may have led to this failure? 2. Some of the Filipino RNs were...

Fred Forgetful parks his personal car on a hill in sunny California and fails to properly set the brake or curb the wheels. As a result of Freds negligence, the car rolls down the hill, damages...

Lynette, a famous basketball player, is considering the possibility of transferring the sole right to use her name to promote basketball shoes produced and sold by the NIK Corporation. NIK will pay...

PepsiCo entered into a contract to sell its corporate jet to Klein for $4.6 million. Before the deal closed, the plane was sent to pick up PepsiCo's chairman of the board, who was stranded at Dulles...

John Hayes and Lynn Magosian, auditors for a public accounting firm, went to lunch at the Bay View Restaurant in San Francisco. John left his raincoat with a coatroom attendant, but Lynn took her new...

Underwood, the CFO of TechCo, Inc., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $50 million of the earnings of TechCos foreign subsidiaries. All of these...

Xavier and his wife Maria have total W-2 income of $89,481. They will file their tax return married filing jointly. They had a total of $10,149 withheld from their paychecks for federal income tax...

The San Antonio Retail Merchants Association (SARMA) was a credit reporting agency. It was asked by one of its members to furnish information on William Douglas Thompson III. It supplied information...

Professor Lucas Phelps sent the following e-mail to Professor Marlin Jones: I recently read the opinion piece you wrote for the Sacramento Bee on affirmative action. Your opinion is incorrect, your...

Under which legal theory or theories might Sun Farms claim that its obligation under the contract has been discharged by operation of law? Discuss fully. Vals Foods signs a contract to buy 1,500...

1. Phishing is the method of: a. Using e-mail or other Internet applications to deceive people into disclosing valuable personal information. b. Convincing a person to divulge personal information...

In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $ 1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt...

Some businesses are aggressive at suing publications that report negative news about them. A cigarette company sued CBS for interviewing a disgruntled former executive; an infomercial producer sued...

Several students from a high school in Fairfax County, Virginia, and another in Tucson, Arizona filed suit against iParadigms for copyright infringement. iParadigms is the company that owns and...

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and...

What if Johns neighbor made his promise to help reassemble the garage at the time he and John were moving it to Johns property, saying, Since you helped me take it down, I will help you put it back...

EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months....

Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year: Revenues from sales of goods $ 783,200 Cost of goods sold (FIFO) ...

Fastener Corp. sent a letter to Renzo Box Co. that was signed by Ronald Lee, Fasteners sales manager, and read as follows: We hereby offer you 200 type #14 Fastener bolts at $5 per bolt. This offer...

1. Should the Foreign Sovereign Immunities Act preclude this lawsuit? Why or why not? 2. Does the act of state doctrine bar Robco from seeking to enforce the contract? Explain. 3. Suppose that prior...

Silver Corporation has 2,000 shares of common stock outstanding. Howard owns 600 shares, Howards grandfather owns 300 shares, Howards mother owns 300 shares, and Howards son owns 100 shares. In...

Would a court likely decide that Odins employment contract falls within the Statute of Frauds? Why or why not? Charter Golf, Inc., manufactures and sells golf apparel and supplies. Ken Odin had...

Describe four types of costs that businesses must absorb due to the regulatory process.

Anthony and Karen were partners doing business as the Petite Garment Company. Leroy owned a dye plant that did much of the processing for the company. Anthony and Karen decided to offer Leroy an...

Spaulding & Kimball Co. ordered from Aetna Chemical Co. 75 cartons of window washers. The buyer received them and sold about a third to its customers but later refused to pay for them, claiming that...

Spinone Corporation directs its sole shareholder, James, to exchange all of his common stock valued at $200,000 (basis of $50,000) for $100,000 of common stock, $70,000 of preferred stock, and...

Albert, Betty, and Carol own and operate the Roy Lumber Company, a limited liability partnership (LLP). Each contributed one-third of the capital, and they share equally in the profits and losses....

Pileggi owed Young money. Young threatened to bring suit against Pileggi for the amount due. Pileggi feared the embarrassment of being sued and the possibility that he might be thrown into...

Wilken owes Rivera $2,000. Howie promises Wilken that he will pay Rivera the $2,000 in return for Wilkens promise to give Howies children guitar lessons. Is Rivera an intended beneficiary of the...

Gilleo opposed American participation in the war in the Persian Gulf. She displayed a large sign on her front lawn that read, Say No to War in the Persian Gulf, Call Congress Now. The city of Ladue...

Complete the chart below, indicating the Calvet Trusts entity accounting income for each of the alternatives. For this purpose, use the following information. Interest income, taxable Interest...

Tommy Morgan was a 20-year employee of New York Life Insurance Company. At age 52, his career at New York Life included a promotion, high marks for job performance, and a good reputation among his...

Janet, a twenty-year-old woman, applied for a position driving a truck for Federal Trucking, Inc. Janet, who is 54 tall and weighs 135 pounds, was denied the job because the company requires that all...

Myrna and James Brown ordered a $35,000 motor home from R.V. Kingdom, Inc. The manufacturer delivered the vehicle to R.V. Kingdom, with title in the dealers name. The Browns agreed to accept the...

Jane Jackson purchased a sealed can of Katydids, chocolate-covered pecan caramel candies manufactured by NestlT. Shortly after, Jackson bit into one of the candies and allegedly broke a tooth on a...

Mrs. Downing was fitted for dentures by a dentist, Dr. Cook. After she received her dentures, Mrs. Downing began experiencing mouth pain that she attributed to Dr. Cooks manufacture of dentures that...

On May 23, Deborah McCullough, a secretary, purchased a Chrysler LeBaron from Bill Swad Chrysler-Plymouth. The automobile was covered by both a limited warranty and a vehicle service contract...

Samuel C. Mazilly wrote a personal check that was drawn on Calcasieu- Marine National Bank of Lake Charles, Inc. (CMN Bank). The check was made payable to the order of Lee St. Mary and was delivered...

When Teris outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash, an account receivable (fair market value of $60,000, inside basis to the partnership of...

Arthur, Barbara, Carl, and Debra decided to form a corporation for bottling and selling apple cider. Arthur, Barbara, and Carl were to operate the business, and Debra was to supply the necessary...

Did Tamik or Arnett violate the Foreign Corrupt Practices Act in this scenario? Why or why not? Isabel Arnett was promoted to chief executive officer (CEO) of Tamik, Inc., a pharmaceutical company...

Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2014. The assets of the business are as follows: Rod and Agnes agree that $50,000 of the purchase price is for...

Smith was employed as a salesman for Borden, Inc., which sold food products in 63 counties in Arkansas, 2 counties in Missouri, 2 counties in Oklahoma, and 1 county in Texas. Smiths employment...

The president and vice president of USA Corporation receive benefits that are unavailable to other employees. These benefits include free parking, payment of monthly expenses in a local club,...

Does a pawnbroker who purchases property in good faith acquire good title to that property? Can the pawnbroker pass good title? [Fly v Cannon, 813 SW2d 458 (Tenn App)]

Buffett sent a violin to Strotokowsky by International Parcel Service (IPS), a common carrier. Buffett declared the value of the parcel at $500 on the pick-up receipt given him by the IPS driver. The...

Use this information to prepare a net worth analysis of Slicks girlfriend. Steve (Slick) Willy, 45, just got out of jail. As a reformed citizen on parole, Slick decides to go into business for...

On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co.; she named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first...

1. What type of franchise was Del Reys La Grande Enchilada restaurant? 2. If Del Rey operates the restaurant as a sole proprietorship, then who bears the loss for the damaged kitchen? Explain. 3....

Boulder Corporation owns all of the stock of PebbleCo, so they constitute a Federal affiliated group and a parent-subsidiary controlled group. By completing the following chart, delineate for...

1. Bryer purchased a suburban home. At the time of the sale, the real estate salesperson pointed to a decorative stone fence as the boundary of the property. Because Bryer had several dogs he wanted...

As a retailer, Zertan Corporation sells software programs manufactured and packaged by other parties. Zertan also purchases computer parts, assembles them as specified by a customer in a purchase...

After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $300,000....

Suppose that the neighbor starts to help John but then realizes that, because of the layout of Johns property, putting the building back together will take much more work than dismantling it took....

C&D Services contracts with Ace Concessions, Inc., to service Aces vending machines. Later, C&D wants Dean Vending Services to assume the duties under a new contract. Ace consents. What type of...

Wesley Hall, an independent contractor managing property for Acree Investments, Ltd., lost control of a fire he had set to clear ten acres of Acree land. The runaway fire burned seventy-eight acres...

Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year. Income from services ............... $400,000 Salaries paid to employees...

Rollo and Andrea are equal owners of Gosney Company. During the current year, Gosney's taxable income before considering salaries paid to Andrea and Rollo is $140,000. Rollo is single, his salary is...

The Coffee Company engages in the following transactions during the taxable year. Sells stock held for three years as an investment for $30,000 (adjusted basis of $20,000). Sells land used in the...

Mabel and Alan, who are in the 35% tax bracket, recently acquired a fast-food franchise. Both of them will work in the business and receive a salary of $175,000. They anticipate that the annual...