You decide week 6 The stock should not be purchase by Mr. Jones. Mr. Jones acquiring the assets, liabilities and also would inherit the contractual obligations of the selling corporation, would, be the results of the purchase. In lay terms, he has bought the existing Smithon Corporation and he is responsible of ensuring daily operations run efficiently but the tax aspect of acquisition he is responsible for existing and any future tax liabilities that the selling corporation had. It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not
If you are inclined to participate in the loan, identify any issues that will warrant careful continued monitoring. If you are not inclined to participate on the terms as outlined in the case, then prepare a counterproposal to NationsBank indicating terms on which you would be willing to participate. Clarification to students of two minor points: (1) At the moment of closing of the deal, Calaveras will have no receivables as Stout PLC will keep them. This reflected Dr. Lynna Martinez’s dissatisfaction with the former marketing company and her uncertainty about the actual value of those receivables. (2) Case Exhibit 6 presents the historical performance of Calaveras as if it were a “stand-alone” company, and excludes intercompany sales to Stout PLC of wine for
B) Estimates may be used without disclosing their use to the IRS. C) Estimates may be used, but Jane should disclose their use to the IRS. D) The Statements on Standards for Tax Services do not address the use of estimates. 78) During the course of an audit, a CPA discovers an error in a prior return. According to the Statements on Standards for Tax Services, the CPA should A) ask the client for permission to disclose the error to the IRS.
The federal government can also control exchange in a situation when it has an effect on interstate progress of supplies and provisions and may strike down state proceedings which are obstacles to such movements (2012). Is The Confusion Statue Constitutional? Discuss Your Legal Reasoning Under the meaning of Article III, Section 2 of the U.S. Constitution, the lawsuit stresses a “case of controversy.” Although states have the authority to set their own statues, some of them can cause distress and have to be evaluated by advanced courts. The state of Confusion is using the undemanding fact that the trucks have to drive through their state and are advancing from them economically. They are not requiring the B-type hitch to guard the roadways and are exclusively requiring the hitch to generate additional profits.
EXCEPTIONS: overcome rule by finding a REAL promise - frame illusory promise as unilateral contract => enforceable ex. Gurfein (99): had window to cancel, but didn’t => enforceable ➢ COULD HAVE bound other party if exercise option - Implied promises ➢ UCC §2-306 (2): a contract to engage in exclusive dealing gives rise to an implied promise to use best efforts Ex. Wood v. Lucy (104): mkt designs for profits ➢ ct implied promise: to make reasonable efforts b/c w/o implied promise, the contract would be meaningless b/c structural agreement = incentive to use best effort is built in Ex. Grouse (110): promised at-will job, not allowed to start work ➢ implied promise in at-will jobs = “good faith opportunity to perform satisfactorily’ - Structural agreements Ex. Lacledes(106): supply propane for long period ➢ although not bound to purchase, practical binding exists ➢ pipes connected to Amoco supply source ➢ hostage theory of contracts: voluntarily
We could bring up the case as a sample to demonstrate what we are discussing about. However, adding a question to prove our point is not recommended in academic writing. The subject line information to identify the situation has to be included on the head of the memo. In addition, clarity, correctness, and courtesy are very important and they represent for our efforts. The memo should be clearly written and organized in direct order, beginning with the objective and then systematically and covering the vital bits of information (Rentz, 2008).
The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles. In essence, materiality should function as a cut-off threshold to determine the nature of the audit testing. Auditors should not reveal its materiality level to clients because clients might take advantage of it to deceive the auditors and make its financial statement better. When the Deloitte auditors are suspicious of certain accounts, they not only can’t reveal it but also make more substantive investigation into these accounts. Question 4: Existence: the
The partners of DDS sued Goodman to hold him liable for the renovation contracts. Goodman denied personal liability. In this case, there is an issue that involves a promoter (Goodman), which is a person who organizes and starts a corporation, finds the initial investors to finance the corporation and so on. Promoters often enter into contracts on behalf of a corporation prior to its actual incorporation. As occurred in this case by the fact that the incorporation would be filed until November 1.
10-7 breach of contract: Roger Bannister was the director of technical and product development for Bemis Co. He signed a covenant not to compete that prohibited him from working for a “conflicting organization” for eighteen months following his termination, but required Bemis to pay his salary if he was unable to fi nd a job “consistent with his abilities and education.” Bemis terminated Bannister. Mondi Packaging, a Bemis competitor, told him that it would like to offer him a job but could not do so because of the noncompete agreement. Bemis released Bannister from the agreement with respect to “all other companies than Mondi” and refused to pay his salary. released Bannister from the agreement with respect to “all other companies than Mondi” and refused to pay his salary Inc., another Bemis competitor.
In 1984, however, there was some argument when Bush seemed to split from Reagan's view. As the competition to succeed Reagan began in 1986, it was clear that taxes would be a central issue. Grover Norquist, head of Americans for Tax Reform, had created a no-new-taxes pledge and was encouraging Republican candidates to sign it. A large number of congressional candidates signed, as did Bush's primary rivals Jack Kemp and Pete du Pont. At first Bush didn’t want to sign the pledge, but in 1987 eventually agreed.