In April 1999 the IRS issued a deficiency notice disallowing the deductions because of section 469’s passive activity rules. The Carter Trust paid the disputed tax in full plus interest and made a timely refund claim, which the IRS denied. The trust then sued for a refund in district court. The court found the IRS’s contention that the trust’s participation in the ranch operations should be measured by referring to the trustee’s activities had no support within the plain meaning of the statute. The court said this position was arbitrary and subverted common sense and, in the absence of case law or regulations, the IRS should not create ambiguity where there was none.
Facts In 1983, GEICO announced plans to purchase several million shares of its outstanding common stock for $60 per share. Among GEICO’s largest stockholders was Berkshire Hathaway, Inc., an investment company. Executives of the two companies decided that Berkshire would tender approximately 350,000 if its GEICO shares in the stock buyback plan, which would allow Berkshire to treat the transaction as a proportionate redemption. In a proportionate redemption, the percentage equity interest of on company in a second company is maintained at the level that existed immediately before the transaction. For federal taxation purposes, the proceeds received by the investor company in a proportionate redemption are taxed as dividends by applying the effective intercorporate dividend tax rate.
Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your interim calculations. Round your cost per unit answers to 2 decimal places. Omit the "$" sign in your response.) Reported Income Statement (1,600 units) Manufacturing Variance Marketing and Administrative Variance Sales Price variance (b) Flexible Budget (a units) Sales Activity
| | | | | * Question 3 0 out of 2 points | | | You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?Answer | | | | | | | Correct Answer: | This is an example of a direct transfer of capital. | | | | | * Question 4 0 out of 2 points | | | Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?Answer | | | | | | | Correct Answer: | Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization. | | | | | * Question 5 2 out of 2 points | | | Money markets are markets forAnswer | | | | | | | Correct Answer: | Short-term debt securities.
LEG 110 Final Exam Answers https://hwguiders.com/downloads/leg-110-final-exam-answers LEG 110 Final Exam Answers Part # 1 Question 1 Carl contracts to sell his house and lot to Winifred for $30,000. The terms of the contract call for Winifred to pay 5 percent of the purchase price as a deposit toward the purchase price, or a down payment. The terms further stipulate that should the buyer breach the contract, Carl will retain the money as damages. What type of damages does this agreement exemplify? Question 2 Two neighboring families, the As and the Bs, wish to enlarge their garages.
Wells Fargo Bank Minnesota v. BrooksAmerica Mortgage Corporation 419 F.3d 107 Second Circuit Court Of Appeals, 2005 FACTS: Michael Brooks needed funding for his company, BrooksAmerica (defendant). Brooks made a contract with Terminal Marketing Company, which agreed on a sale lease-back. Terminal was to pay Brooks $250,000 in order to obtain title to BrooksAmericas computers and office equipment. Brooks signed a “delivery and Acceptance certificate” which stated Brooks received $250,000, even though no exchange had happened. Terminal assigned its rights to Wells Fargo (plaintiff).
• The hours of your business can be whatever you want them to be. • You are free to stay in the same location as long as you wish. (2) Jane Smith Tax Issues: (a) What are the different tax consequences between paying down the mortgage debt and assuming a new mortgage debt for federal income tax purposes? Applicable Law & Analysis: (Section 121 (a) “Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more. (US Code, Section 121 (a); http://www.law.cornell.edu/uscode/text/26/121 Conclusion: There should be a little or no difference between paying an old mortgage and assuming a new one.
They see the short-term loan as a quick fix that can get them through to the next payday. These lenders don’t require any kind of credit check or form of collateral. A user can walk into a payday loan shop with some identification, a recent paystub, and a check and literally walk out 15 minutes later with cash in hand. Researchers argue that many payday loan customers may not even know what an APR is, let alone have any basis for judging whether 400 percent is high or low (Fisman, 2009). Things start to spiral out of control when borrowers are unable to make their payment.
If no documents are forged, and if practices are properly approved and disclosed, appropriately accounted for, properly treated for tax purposes and in accordance with the terms of the option plan, most option granting practices should fall safely within the law (Rives, 2006). Legally as long as all of the paper work is met and the taxes are paid this is a perfectly legal process, however ethically it is illegal. A CEO has social responsibilities as well as responsibilities to his or her organization. For a CEO to profit when his or her corporation is in a slump or reporting tragic losses on its balance sheet, this is not a time for a CEO to be cashing in. This demonstrates poor judgment and poor faith in ones company.
The proceeds of the sale were deposited directly into Mr. Thompson’s bank account. In 1934 before the sale, a portion of the property was leased for use as a parking lot for a rental of $1,000. In addition Mr. Thompson paid directly for a lawsuit to remove restrictions on the property and the legal costs regarding defense of certain condemnation