Can MegaCorp, Inc. deduct the loss as ordinary and necessary under IRC 162? Short Answer IRC 162 provides the general rule for determining deductibility of trade or business expenses as ordinary and necessary. This is the standard claim for support of deductibility, but there is no provision in this Code section for deducting items that are capital in nature, which is the IRS contention under IRC 263. The statute is silent as to litigation settlements paid as a result of corporate acquisitions. IRC 263 provides the general rule that no deduction shall be allowed for items that are capital in nature.
Since Smith’s use was ordinary, meaning that he was using the vehicle for normal everyday use under ordinary conditions, the dealer’s personal injury disclaimer cannot be enforced against him. The sales contract drawn up by the dealership is not reasonable as it favors them. It allows them to circumvent any effort to make sure the vehicle is working in a safe manner prior to the sale. In conclusion, I believe Mr. Smith will prevail against the seller for breach of warranty. The steering mechanism defect of the vehicle made it unfit for ordinary use ultimately causing the injuries.
Title: Impact of Unrelated business activities income tax on Non-Profit organizations and the misuse of tax exempt status by Managers to over compensate and misallocate expenses. Non-Profit organizations are those that can receive tax-deductible contributions. Nonprofits fall into one of three general categories: hospitals, schools, and other charitable organizations. Pensions or social clubs cannot be included in this list. Religious organization may gain non-profit status, however they are not supposed to provide information reports to IRS.
The federal district court in northern Indiana ruled that the price quotations were not offers. “Price quotations are a daily part of commerce by which products are shopped and commercial transactions initiated. Without more, they amount to an invitation to enter into negotiations, but generally they are not offers that can be accepted to form binding contracts ("Q.c. onics, ventures,," ) In this case, “the parties' conduct and the surrounding facts and circumstances do not suggest that the parties considered the price quotations as offers ("Q.c. onics, ventures,," ).” The price quotations did not include important terms other than pricing.
An auditor only looks at financial statements during a review without digging deeper to find any material misstatements or potential fraud, there is no review of the company’s internal controls, also the auditor does not look at any files that backup the financial statements they are given. In this case, the owner of the company hindered the auditor’s from doing their due diligence because he did not want his fraud discovered. 2. According to AU 326 of the Public Company Accounting Oversight Board, information from outside sources should be reliable. There should have been many substantive tests performed, objectives set forth, due diligence for true existence or occurrence of any files or contracts.
KELLER GRADUATE SCHOOL OF MANAGEMENT MGMT 597: Strat Considrs Mgrs & Owners PROFESSOR JEANNE LUNSFORD – SOLIS ROBERT MOORE JR. (D01440614) 9.4 Business Ethics Cases: Winkel v. Family Health Care In the Business Ethics Case of Winkel v. Family Health Care, two questions arises; do Winkel receive the profit-sharing bonus or was Dr. Vranich acting ethical when he raised the defense that the contract was an oral agreement and not a written contract. In my opinion, Winkel is not entitled to receive the profit-sharing bonus under the equitable doctrine of quasi-contract. According to our text (Cheeseman,2009), quasi-contract (implied – in – law contract) is defined as “equitable doctrine where by a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.” (Chesseman, 2009) Winkel testified in court that the agreement to receive a profit-sharing bonus was an oral agreement. The question that is being raised is whether the oral agreement was executed, i.e., fully performed. The appellate court reversed the trail court’s ruling that Winkle was entitled to the profit – sharing bonus.
Answer: True Difficulty: Easy LO: 1 Page: 410 T F 5. Generally, it is not a good idea to participate in an employer-sponsored retirement program. Answer: False Difficulty: Easy LO: 1 Page: 410 T F 6. The rate of return on an investment has no affect on a long-term investment program. Answer: False Difficulty: Med LO: 2 Page: 414 T F 7.
REASONING: The VAWA statute does not fall under the commerce clause because in no way was the criminal activity related to economic interstate activity. PERSONAL OPINION: I agree with the Supreme Court’s
Morgan states that there is no need to disclose remote loss contingencies. If we comply with the ED that all loss contingencies should be disclosed, it’s hard for investors to distinguish material and immaterial information. 4. J.P. Morgan believes that the existing ASC 450 disclosure requirements not only provide sufficient information to investors, but also protect confidential, privileged and sensitive information of entities. Therefore, it's not necessary to issue
If the person or organization is connected to the stadium in a political, business, or financial manner, there should be no offer of attendance unless their presence will be official in nature. It should be the stadium’s responsibility to check for conflicts of interest before sending out offers of free admittance, and encouraging attendees to falsely claim their presence as official business. Reserving sections of the stadium for compensated ticketing is a valid business related decision, but the practice should be shielded from the scrutiny of public watchdog groups by removing compensation altogether for any public official. The only offers for free admission should be to those that are taking part in the festivities in some way such as; throwing out the first pitch, making a speech, singing or performing, or contest winners. The ethical implications could have been anticipated if the proper attention was given to deciding what was right.