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Roles of law and courts in today's business environment
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Facts Carol Read and William Read Owned Mulberry Motor Parts, Inc.(MMP) together when they were married. They got divorced in 1985, and their divorce agreement required that the Ms. Read transfer all her stock to Mr. Read or to MMP at his election. On February 5, 1986, Ms. Read transferred all her stock to MMP and the selling price was $838,724. MMP provided her with $200,000 by check and issued to her “an installment promissory note in the amount of $638,724 and bearing 9% annual interest” page8 Ms. Read reported the interest income from the installment promissory note in her 1988, 1989, and 1990 tax returns. However, she did not report any principal income from the stock transfer transaction in her tax return. Mr. Read also
Shelly Zumaya (2220 East Hennepin Avenue, Minneapolis, MN 55413) is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Incorporated in 2003, Kiwi Corporation’s sole business has consisted of the purchase and resale of used farming equipment. In December 2011, Kiwi transferred its entire inventory (basis of $1.2 million) to Shelly in a transaction described by the parties as a sale. According to Shelly and collaborated by the minutes of the board of directors, the inventory was sold to her for the sum of $2 million, the fair market value of the inventory. The terms of the sale provided that Shelly would pay Kiwi Corporation the $2 million at some future date. This debt obligation was not evidenced by a promissory note, and to date, Shelly has made no payments (principal or interest) on the obligation. The inventory transfer was not reported on Kiwi’s 2011 tax return, either as a sale or a distribution. After the transfer of the inventory to Shelly, Kiwi Corporation had no remaining assets and ceased to conduct any business. Kiwi did not formally liquidate under state law. Upon an audit of Kiwi Corporation’s 2011 tax return, the IRS asserted that the transfer of inventory constituted a liquidation of Kiwi and, as such, that the corporation recognized a gain on the liquidating distribution in the amount of $800,000 [$2 million (fair market value) - $1.2 million (inventory basis)]. Further, because Kiwi Corporation is devoid of assets, the IRS assessed a tax due from Shelly for her gain recognized in the purported liquidating distributi...
In the beginning of March the newly joint corporation, McKesson HBOC started a negotiating process with Oracle Corporation. Unfortunately for McKesson, the negotiations ended without a contract. On April 1 Bergonzi let Hawkins know that he found an offer that could be a good deal. The agreement would require McKessonHBOC to sell $20 million worth of software to Data General, along with a license and a right to return any inventory that was not sold during the period of 6 months. The corporation would also have to help Data General find customers for the product. In return, they could buy $25 millions worth of computer hardware. The contract was signed on April 5 the same year. The senior management thought that backdating the sales and purchases would raise the company's revenues up to the desired levels. In order to cover their actions, the company created a false delivery receipt that showed the date of the delivery as March 31, 1999, while in reality the product was delivered in April. Both, the information about the $25 Million purchase of hardware from Data General as well as the return agreement concealed from the public.
When doing an evaluation of any case, you should always look at all the relevant facts and issues involved before jumping to conclusions. As for this case, Mike Thurmond, the operator of Top Quality Auto Sales, a used car dealership, has financed his dealerships inventory of vehicles by creating a financing arrangement with Indianapolis Car Exchange (ICE). ICE then filed a financing statement that listed Top Quality’s inventory as collateral for the financing. After this, Top Quality sold a Ford truck to Bonnie Chrisman, who was also a used car dealer. Chrisman paid Top Quality for the truck and then proceeded to sell it Randall and Christina Alderson, who paid Chrisman for the vehicle. In
ARB43, Ch.4, Par.9 ?Where evidence indicates that cost will be recovered with an approximately normal profit upon sale in the ordinary course of business, no loss should be recognized...?
Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url
Weld, L. G., Bergevin, P. M., & Magrath, L. (2004). Anatomy of a financial fraud. The CPA
A direct current in a set of windings creates a polar magnetic field. A torque acts on the rotor due to its relation to the external magnetic field. Just as the magnetic field of the rotor becomes fully aligned with the external magnetic field, the direction of the current in the windings on the armature reverses, thereby reversing the polarity of the rotor's electromagnetic field. A torque is once again exerted on the rotor, and it continues spinning.
Enron’s Case of fraudulent transactions with the banking firm of Merill Lynch proves to be a perfect example of how loans are used to boost sales while in fact they’re technically not sales. In 2004 the “Nigerian barge” transaction ensued with Enron selling electricity-generating power barges to Merill Lynch. A huge sale as the company executives recorded it but it turns out it was actually a loan rather than a sale and that Enron did not actually earned from the transaction thus the investigations by the Securities and Exchange Commission in 2004. Perhaps the big question to be answered in this essay is, why is the transaction considered a loan rather than a sale? And if it were a loan, how would it affect the company’s financial statements?
The case revolves around Bob Marvin, president of the Motor Parts Corporation (MPC), and his executive vice president, AL Shepherd, who held a key senior management position in the company. After Bob, Al had the most important job since most of the line functions reported directly to him. His job required a considerable amount of traveling which he was not able to do lately because of his wife’s illness. Al 's wife, Ruth, was suffering from a malignant brain tumor due to which he was spending more and more time away from work to be with her.
In the world that we live in today ethical and social responsibilities are something that we face on a daily basis. In the business world specifically they are a constant struggle that is being faced by employees at all levels of the company. The Fitzgerald Machine Company is one example of a company that is currently facing ethical and social responsibility issues.
It all started in 1979. Mazda, a relatively small player in the world automobile market in the automobile market at that time, wanted a string international partner in order to make the transformation from being a small niche player to becoming a major global automaker. At the same time Ford was also looking for a partner to help it design and produce smaller automobiles. The two firms agreed that they were logical partners.
Since their founding in 1837, John Deere has led the agriculture industry around the world. For over 135 years the John Deere leaping deer logo is one of the most recognized logos in existence today, it represents a symbol of quality products (Our History, 2017). As of May 2017, John Deere has over 56,800 employees in factories, facilities, and offices located in 30 countries and they are listed as number 260 on the world’s largest public companies (Deere and Company, 2017). The John Deere name is linked to designing and engineering products and services that are committed to the land. With product lines that range from balers, tractors, and lawn mowers, they also have product lines for forestry services, government support, and construction.
Q1. Using the Mabati Rolling Mills Case Study, explain the various sources of funds as discussed by the management of Mabati Rolling Mills. Give the advantage and disadvantage of each source.
Introduction Ever since its founding as a motorcycle manufacturer on July 1, 1955, Yamaha Motor Company has worked to build products which stand among the very best in the world through its constant pursuit of quality; and at the same time, through these products, it has sought to contribute to the quality of life of people all over the world. Following on from the success of our motorcycles, Yamaha began manufacturing powerboats and outboard motors in 1960. Since then, we have used our engine and FRP technology as a base to actively expand and diversify our areas of business. Today our fields of influence extend from the land to the sea and even into the skies as our business divisions have grown beyond our Motorcycles operations to include Marine operations, Power Product operations, Automotive Engine operations, Intelligent Machinery operations, Sky operations and our PAS operations. corporate mission We create “kando”.
In the system proposed shown in Figure 1.5, the most important parameters to be controlled is the speed of the DC motor. The speed of the DC motor is defined as [5]: