Additional cards 2 Flashcards
(325 cards)
1
Q
Secured party
A
Th eperson that provides credit to the debtor and takes an interest in the debtor’s collateral to help assure repayment of the debt
2
Q
Security interest
A
The legal interest in collateral that secures either payment or debtor’s special performance of some obligation
3
Q
Chattel paper
A
A writing that provides evidence of the monetary obligation and the security interest in the good
4
Q
Requirements of a valid security agreement:
A
The agreement must be in writing
Must be signed by debotr, creditor’s signature not required
Reasonable description of the collateral
5
Q
Attachment
A
Term used to describe the moment when security interest is enforceable against a debtor by the secured party
6
Q
Perfecting a security interest gives:
A
notice to other parties
7
Q
3 primary ways that an attached security interest may be perfected
A
- most security interest eith can or must be perfered by filing financig statements in the appropriate state office
- secured party takes possession of collateral
- automatic perfection only with consumer goods
8
Q
Purchase money security interest in consumer goods
A
Perfection is accomplished
9
Q
Purchase money security interest (PMSI) in noninventory has:
A
priority over nonpurchase money security interests if it was perfected within 20 days after the dbtor received the collateral
10
Q
Any debtor may file for Chapter 7 except
A
Railroads
Banking institutions
Insurance companies
11
Q
Chapter 11
A
reorganization of debts
12
Q
If there are fewer than 12 creditors:
A
a single creditor may file the petition as long as his/her claim aggregates $15,325 in excess of any security he may hold
13
Q
IF there are 12 or more creditors:
A
then at least 3 must sign the petition and they must have claims that aggregate $15,325 in excess of any security held by them
14
Q
Trustee may set aside:
A
transfers made within one year to the filing of the bankruptcy petition
15
Q
Preferential transfers made to insiders:
A
within the previous 12 months may be set aside
16
Q
claims for consumer deposits for undelivered goods or services:
A
limited to $2,775 per individual
17
Q
Discharge
A
The release of a debtor from all his debts not paid in bankruptcy
18
Q
Chapter 11
A
Goal is to keep financially troubled firm in business
19
Q
Creditor’s committee
A
A group of unsecured creditors who essentially function as the bankruptcy trustee in chapter 11 cases
20
Q
Reaffirmation
A
When a debtor voluntarily chooses to repay a debt that otherwise would be fully discharged under the Bankruptcy code
21
Q
Set aside
A
effectively this action returns the parties back to their original position before the wrongful transfer took place
22
Q
stay
A
a cour order that prevents further collection actions by creditors. the stay is issued upon the filing of the bankruptcy petition, but does not apply to family law issues
23
Q
Any deficiency for secured creditors after the collateral is sold:
A
is paid along with the general creditors
24
Q
Liens
A
Creditors claims on real or personal property to secure payment of debt or performance of obligations
25
Mechanic's lien
Statutory lien on real property to secure payment of debts for service to improve real property
ex. worker puts a new roof on an owner's building. puts lien on building to secure payment
26
Artisan's lien
One repairs or improves personal property for another and retains posession of that personal property
ex. mechanic puts an artisan's lien on a car
27
Attachment is a court-ordered seizure of property:
due to lack of payment **prior** to court judtment for past-due debt
28
Garnishment
Allows creditor to seix property, usually money, owed to debtor by third party
29
Fair Debt Collection Practices Act
Restricts how creditors may collect debts
Collection agencies are prevented from contacting debotor-consumer at inconvenient hours, inconvenient places, or at work if employer object
30
Consumer Lenders
Required to make additional disclosures in credit card statements relating to minimum payments, late fees, and introductory rates
disclose toll-free number
more disclosures on tax consequences
31
Credit card holder's liability for lost or stolen credit card
Limited to $50 per credit card for unauthorized charges
not liable for any charges after holder notifies issuer
32
Homestead exemption
Can exempt a debtor's equity in certain property from postjudgment collection by a creditor
applies to general creditors and bankrutptcy trustee, not secured creditors or lien holders
33
In both suretyship and guaranty
Third party promises to pay debt owed by debtor if debtor does not pay
34
Strict suretyship
Surety promises to be responsible for the debt and is **primarily** liable for the debt
35
In contrast to suretyship, in guaranty contract gurantor is normally:
secondarily liable
36
If guarantor's promise is primarily for his/her own benefit (main purpose doctrine)
it need not be in writing
\*normally these do need to be in writing
37
**A guarantor of collection is different than a mere guarantor:**
A creditor only needs to request payment from payment from the debtor before proceeding against a guarantor
Whereas the creditor must exhaust all legal remedies against the debtor before proceeding against a **guarantor of collection**
38
subrogation
Upon payment, surety obtins same rights against principal debtor that the creditor hard
39
Fraud by principal debtor to induce a suretyship agreement:
will **NOT** release surety if credtiro has extended credit in good faith
40
If creditor relases the debtor, the creditor reserves its rights gainst the suurety
the surety is still liable to the creditor
41
Release of surety by creditor
Does **Not** release principal debtor because debtor is liable whether or not surety is liable
42
S is a surety on a $10,000 loan between Creditor and Debtor. Creditor is also holding $1,000 of Debtor's personal property as collateral on the $10,000 loan. Before the loan is paid, Creditor returns the collateral to Debtor
This action releases S from $1,000 of the $10,000 loan
43
Cosureties
Exist when there is more than one surety for same obligation of principal debtor to same creditor
44
Assignment for the benefit of creditors
A possible alternative to bankruptcy
This occurs where a debtor assigns assets to a third party who uses those assets to pay the debtor's creditors.
It is important to remember that an assignment for the benefit of creditors does *not* release the debtor from the debt, unless the debts are paid in full
45
Agency
Relationship between 2 parties, whereby one party (agent) agrees to act on behalf of the other party (principal) with respect to third parties.
A contract is not required but is frequently present
46
Employer and Employee
Principal - employer
Agent - employee
47
Power of attorney
A person authories another person to act as his representative
agency
48
Del credere
A sales agent who guarntees the accounts of the cusomers to his principal
49
If agency contract cannot be completed within a year
must be in writing
50
Actual authority comes from:
the principal
51
Apparent Authority
Comes from a third party's **reasonable**, but mistaken, belief that the agent has actual authority to enter into the contract
52
If agent acts with no authority, then the principal is not liable unless:
the principal ratifies the contract
53
The principal's liability for the agent's tort depends upon whether the agent's tort was committed:
in the **scope of employment**
54
Intentional torts are normally:
outside the scope of employment
55
Relationship between a corporation and CPA to audit corporate books
Employee and independent contractor
56
To whom do subagents owe fiduciary duties
both agent and principal
57
FICA
Imposes social security tax on employees, self-employed, and employers
58
FICA is also used to fund:
Medicare, **not Medicaid**
59
Unemployment insurance (FUTA)
Tax is used to provide unemployment compensation benefits to workers who lose jobs and cannot find replacement work
60
Workers compensation
A form of strict liability whereby employer is liable to employee for injurries or diseases sustained by employee which arise out of and in course of employment
61
Important point about workers compensation:
**No fault need be shown**
62
If employer **intentionally** injures employee
Employee may proceed against employer based on intentional tort in addition to recovering under workers compensaiton benefits
63
Employee is entitled to workers compensation benefits without:
regard to fault
64
Title VII
of 1964 civil rights act forbids discrimination in employment on the basis of race, color, religion, sex, or national origin
65
Quid pro quo
Intentional harassment involving promotions, job offers, job benefits, in exchange for sexual relations
66
National Labor Relations Act (NLRA)
Provides that employees have right to join, assist, or form labor organizations
67
Permissive bargaining subjects
Topics that either side **may** negotiate about.
68
Federal Consolidated Omnibus Budget Reconciliation Act
Provides that when employee quits, he may keep group health insurance coverage for 18 months
69
Worker Adjustment and Retaining Notification Act
Provides that employers before the close or have massive layoffs must give 60 days notice to employees
70
Parties involved in cleanup costs and environmental damages have **joint and several liability:**
1. current owners and operators
2. past owners and operators of site
3. persons who transported waste to site
4. persons who arranged to have waste transported
71
The standard is based on ________ for all cleanup costs
**strict liability**
72
Antitrust law
Main purpose of federal antitrust law is to promote the production and distributin of goods and services in the most economical and efficient manner by preserving free, compettive market
Regulation is by federal law\*
73
Sherman Act of 1890
Contracts, combinations, conspiracies, or agreements in restraint of trade are illegal under this act
74
per se rule
the restraint is automatically illegal
75
illegal to obtain or create a monopoly
sherman law
76
Clayton Act
Prohibits a corporation from acquiring the stock of a competing corporation (merger) where the effect **might** substantially lessen competition or tend to create a monopoly
77
conglomerate merger
not in the same industry
78
Tying arrangements
Where the seller forces the buyer to take one ore more other products as a condition to acquiring the desired product
79
Robinson-Patman Act
Prohibits price discrimination
When a seller charges different prices to different buyers of the same good
80
Firm offer rule
Promise to hold an offer open is irrevocable if the promise is:
in writing and
made by merchant
81
Perfect tender rule
Seller's tender of goods must conform exactly to the terms of the contract
82
Anticipatory repudiation
One party clearly indicates that it is unwilling, or unable, to perform the contract as promised
83
Bill of lading
A document of title that is issued by a private or common carrier in exchange for goods delivered to it for shipment
84
Examples of voidable title
Goods paid for with a check subsequently dishonored
Goods obtained by fraud, mistake, dures, or undue influence
Goods obtained from minor
Thieves and or finders of property have **void title**
85
Sale on approval
Goods may be returned even if they conform to the contract
86
Express warranties
Any affirmation of fact or promise made by the seller to the buyer that relates to the goods and becomes part of the basis of the bargain creates an express warranty
87
warranty of merchantability
goods are fit for ordinary purpose
88
Warranty of fitness for a particular purpose
Created when the seller knows of the particular use for which the goods are required and further knows that the buyer is relying on skill and judgment of seller to select and furnish suitable goods for this particular use
89
Negligence
1. duty to exercise reasonable care
2. breach of duty of reasonable care
3. caused injury/damages
4. damages
90
Work Product doctrine
Doctrine that protects work product from detection
91
Entity Classification Form
Form 8832
92
whre does federal tax legislation begin?
house of representatives
93
\_\_\_\_\_\_\_\_\_\_ are not considered personal holding company income
capital gains
94
Chapter 9
municipalities
95
listed property
must be used in business 50% or more to get 179 treatment
96
all court cases start where?
trial court
97
small oil and gas depletion percentage
15%
98
\_\_\_\_\_\_\_\_\_\_\_\_\_ may not deduct the costs of fringe benefits
sole proprietorships
99
death benefits received from term life insurance policy on parent.
not taxable
100
Audit committees of the board of directors:
All members must be independent
Must have at least one financial expert
101
The registration statement describes:
the use of the proceeds
and contains audited financial statements
102
Tombstone ad
informs investors about obtaining prospectus
103
how many days for proxies
10 days
104
Short swing profits
Must be returned to the company
6 months
105
All members of the compensation committee of the BOD
must be independent
106
Emerging companies do not have to have audits of internal control
for 5 years or until gross revenues are $1 billion or more
107
Alien corporation
when it is operating in a different country
108
collateral estoppel
you didnt file the papers but everyone thinks you are an entity
109
A revocation is effective when:
received by the offerree
110
A promise to hold an offer open for a specified time is not binding:
unless suppoted by consideration
111
condition precedent
a condition that must be met before a contract becomes enforceable
112
condition subsequent
a condition that, upon being met, releases a party from obligation
113
Fraud in the execution (deceived into thinking it isnt a contract)
void
114
Fraud in the inducement
Voidable
115
mutual mistake
voidable
116
extreme durress
void
117
simple durress
voidable
118
When the subject contract is unique:
specific performance
119
common carrier
strict liability
120
Sale on Approval
Buyer takes possession - risk of loss remains with seller
title and risk of loss transfer upon acceptance
121
COD
buyer generally has right to inspect goods before making payment
Buyer gives up right to inspect before payment in contract specifying COD shipment
122
How id warranty of merchantability disclaimed?
phrases such as "as is"
123
When partial payment is made to an insolvent seller, the buyer may recover or capture goods identified to the contract that are in the possession of the sller under the right of \_\_\_\_\_\_\_\_\_\_
replevin
124
trade acceptance
seller extends credit
draft
125
acronym for requirements of negotiability
FAMOUS
126
bearer paper:
negotiated by delivery alone
127
Order paper:
negotiated by delivery and endorsement
128
3 Requirements of HDC
instrument taken for value
taken in good faith
without notice of defects
129
forgery
real defense
130
fraud in the execution
real defense
131
material alteration
real defense
132
discharge in bankruptcy
real defense
133
minority
real defense
134
extreme durress
real defense
135
breach of contract
personal defense
136
lack of consideration
personal defense
137
imposter or fictitious name given by payee
personal defense
138
simple duress
personal defense
139
fraud in the inducement
personal defense
140
Consumer credit contracts
cannot take as a holder in due course
141
The only warranty that requires the transferor knows of the warranty breach
transferor's warranty liability
142
No one has primary liability on a draft until:
it has been accepted
143
A party may eliminate its contract liability, not warranty liability, by signing:
without recourese
144
3 requirements for a valid security agreement:
in writing, except when in possession of collateral
signed by the debtor
a description of the collateral
145
attachment gives the right to WHAT upon default of debtor
collateral
146
Acronym for attachment
GRIPS
147
acronym for perfection
ASAP
148
Requirements for PMSI in noninventory goods to have highest priority
Must be perfected within 20 days of debtor possessing collateral
149
If perfection by filing versus perfection by possession:
in order of perfection date
150
Authorized credit counselor
Consumer debtor must meet with an authorized credit counselor within 180 days prior to filing for bankruptcy
151
Avoidance acronym
FLAP
Fradulent transfers
Liens against debtor's property
after-filing date transfers
voidable preferences
152
Acronym for voidable preferences
nopie
within ninety days of filing of petition to a noninsider
within one year of filing to an insider
for a pre-existing debt
while the debtor is insolvent
when the transfer exceeds the amount the creditor would obtain through bk
153
Priority claims acronym
stop it
support payments
trustee fees
obligations created after petition
payroll benefits
individual deposits on consumer goods not received
taxes owed to federal, state, and local governments
154
acronym for exceptions to discharge
stupid
student loans
taxes within 3 years
unscheduled debt causing credit not to be notified of bankruptcy
pension and profit sharing obligations
intentional force or fraud against another person
domestic support oglibations for alimony and child support
155
Composition of creditors
agreement between debtor and certain creditors
creditors agree to accept portion of their claims
remainder of claims of agreeing creditors discharged
156
require principal debtor to pay the obligation
exoneration
157
obtain repayment from principal debtor
reimbursement
158
obtain rights of creditor against debtor and debtor's collateral
subrogation
159
receive proportionate payment from cosureties
contribution
160
If a cosurety is released by the creditor:
the remaining sureties are not liable for the proportionate share of the released surety
161
Fiduciary duties include duty of:
loyalty
obedience
due care
162
principals are not responsible for actions of:
independent contractors
163
Recommendations for actions affecting the environment must be accompanied by:
an **environmental impact** statement
164
unreimbursed amounts of FICA are:
compensation to the empoyee
165
noncontributory
only employer makes payments to plan
166
Employee contributions must vest:
immediately
167
Employer contributions must vest:
over a reasonable time
168
COBRA
protects employees from losing medical insurance upon termination of employment
169
intentional discrimination:
disparate treatment
170
unintentional discrimination
disparate impact
171
Horizontal agreements
Agreements between competitors
illegal per se
172
vertical restraints
vetween separate businesses in the chain of distribution
173
monopoly power
=\> 70% or more
174
Robinson-patman act
prohibits sellers from charging different prices to different buyers for same goods
price discrimination
175
which tenants can have unequal ownership rights?
tenants in common
176
If trademark is not used for ________ years the trademark is abandoned
3
177
Businesses with average gross receipts \> __________ cannot use the cash method
$5,000,000
178
Fringe benefits incurred for employer's benefit:
excluded from gross income
179
Amortization of bond discount
included in income
180
Interest on Series HH US savings bonds
included in income
181
Nondeductible passive activity losses:
may be carried forward indefinitely or deducted when property sold
182
Coverdell Education Savings Accounts (ESA)
may contribute up to $2,000
must be on behalf of beneficiary under age 18
183
Portion of jury duty fees remitted to employer:
are deducted in calculating AGI
184
amortization of premium
itemized deduction
185
premiums for health insurance coverage
deductible medical expense
186
Interest on personal indebtedness is not deductible:
car loans
credit card debt
187
NOL from casualty and theft losses:
can carry back 3 years instead of normal 2 years
188
Qualifying child
relationship
age - child under 19 or under 24 and full time student
support - child must not provide more than half of own support
housing - child must live with taxpayer for more than half of year
189
Dependent care credit:
qualifying child under age 13
190
Resulting base amount x Tax rate = Tentative minimum tax
26% x first 182,500
28% (base amount - 182,500)
191
Tax payments include:
excess payroll taxes withheld
federal income taxes withheld
estimated tax payments
192
Penalty imposed for late payment of taxes unless:
underpayment for year \<$1000
payments \>= 90% of current year's liability
taxes paid \>= 100% of prior year's liability
193
Qualified widow or widower
Must be providing \> half the costs of maintainig household for dependent child
Available for 2 years after death of spouse
joint return was filed for year of spouse's death
194
Schedule A
itemized deductions
195
Schedule B
interest and dividend income
196
Schedule C
Profit or Loss from Business
197
Schedule D
capital gains and losses
198
Schedule E
Supplemental income and loss
199
Form 4797
sale of business property
200
Schedule 1116
foreign tax credit
201
Net earnings from self employment \>= _____ must file
$400
202
Recovery period for residential real property:
27.5 years
203
recovery period for nonresidential real property
39 years
204
Equipment, office furniture, and fixtures
7 years
205
cars, light trucks, and office equipment, computers
5 years
206
small tools
3 years
207
Personal property uses what convention:
half-year
208
Related taxpayer:
corporation or partnership where direct or constructive ownership \> 50%
209
Like-kind exchanges
Gains recognized to extent of boot received
210
Partnership tax return form:
1065 tax return
211
Partnership terminates and its tax year closes when either:
Partnership no longer has at least 2 partners or stops doing business
More than 50% of total partnership interests are sold within a 12 month period
212
213
Corporation basis for asset:
same as shareholder's basis
+ gain recognized
214
Corporate Tax
Going from Preliminary tax liability to total tax liability
+ personal holding company tax
+ accumulated earnings tax
+ alternative minimum tax
215
If received from a shareholder, property has \_\_\_\_\_\_\_\_\_
a transferred basis
216
If received from a nonshareholder, property has \_\_\_\_\_\_\_\_\_
a zero basis
217
When a corporation issues its own stock
never recognizes gain or loss
218
Premiums on key person insurance if company is beneficiary
nondeductible for corp
219
DPAD deduction
lower of 9% of QPAI or taxable income
limited to 50% of W2 wages
220
Dividends Received Deduction does not apply to:
Dividends from a foreign corporation
Dividends from a tax exempt organization
221
2 conditions for PHC tax
Interest, dividends, rents, royalties, or personal service contracts \> 60% of gross income
Five or fewer shareholders own \> 50% of stock
222
PHC tax =
Undistributed PHC income x 20%
223
PHC tax can be reduced by
actual and consent dividends
224
The accumulated earnings tax is not:
self assessed
225
Adjustments to pre-ACE AMTI to compute ACE include adding:
Seventh percent dividends received deduction
Life Insurance proceeds
Municipal bond interest on general obligation bonds
SLIM
226
ACE adjustment;
75% x (ACE - pre ACE AMTI)
227
Foreign Tax Credit =
smaller of:
Amount of foreign tax paid
(Foreign taxable income / total taxable income) x total us tax liability
228
Schedule M-3
More detailed version of M-1
for corporations with total assets in excess of $10 million
229
Spin offsand split offs
One corpporation divides into 2 or more separate corporations
230
1244 stock gains
Capital gains
231
Only 1 class of stock for S corps
voting and nonvoting are one single class of stock
232
Net rent and royalty income:
Subject to passive activity loss limitations
233
Tax preferences and adjusments:
Used to compute shareholder's AMT
234
Charitable contributions and simple trusts:
Simpe trusts cannot make charitable contributions
235
Estate exemption
$600
236
Simple trust exemption
$300
237
complex trust exemption
$100
238
Net capital gains and DNI
Net capital gains are allocated to the principal and not included in DNI
239
Tax return due date for an estate:
3.5 months after close of year
240
Estimated quarterly tax payments for Estates
Not required for first 2 years
Required after
241
Discount on sale ofproperty to family member:
included in taxable gifts
242
Reduction in interest on loans to family members at low rates
included in taxable gifts
243
Inherritance holding period
automatically long term
244
Amended individual income tax return: due date
within 3 years from when original return filed
245
S corporation tax return due date:
March 15
246
Exempt organization tax return: due date
May 15th of following year
247
HSA savings account
Deduction for AGI
248
\_\_\_\_\_\_ is tax free when withdrawn
ROTH IRA
249
Attorney fees in discrimination lawsuit
deduction for AGI
250
Section 179
$25,000
Up to total purchases of $200,000
excess 179 can be carried forward
251
interest and dividend income
portfolio income
252
personal property
mid year (or mid quarter)
253
leasehold improvements
39 years
254
accident premiums
not deductible
255
foregin income tax
deductible
256
Investment interest expense on tax free
not deductible
257
mortgage points
dedutible if prepaid interest
258
Donate property to charity
LTCG and related to charity
Deductible up to 30% of AGI
use FMV
259
Donate property to charity
STCG and not related
Deductible up to 50%
Use adjusted basis
260
Childs investment income that exceeds $1900
will be taxed at parent's rate
261
Nonresident aliens
can still file married, filing jointly
262
Refundable tax credit
earned income credit
child tax credit
American opportunity credit
263
\_\_\_\_\_ days to petition the tax court
90
264
no petition =\>
10 days to pay tax
265
S corp dividend income
tax free
266
adoption credit
not refundable
267
adoption expense
not deductible
268
Current Earnings and Profits =
Taxable Income
+ Nontaxable Income (permanent differences)
- Nondeductible expenses (permanent differences)
+/- Temporary GAAP vs Tax differences
269
current earnings are allocated on a
pro rata basis
270
accumulated ep is allocated based on
chronological order
271
Accumulated Adjustments Account =
Ordinary Income
+/- Separately Stated Items (lines 2-12 on K-1)
- Distributions
272
S corp distributions with C corp E&P
1. to extent of AAA - reduces basis - not taxed
2. to extent of C corp E&P - does not reduce basis - taxable dividend
3. to extent of basis - reduces basis - return of capital not taxed
4. in excess of basis - taxable capital gain distribution
273
Paul Pappas owns all of the stock of an S corporation which had previously been a C corporation.
The S corporation had the following balances at the beginning of its tax year:
Accumulated adjustments account $ 8,000
Accumulated earnings and profits $ 10,000
Paul's stock basis was $20,000 at the beginning of the tax year.
The S corporation made a distribution of $19,000 to Paul during the year.
What is Paul's stock basis at the end of the year?
11,000
274
fee information from a tax practictioner:
It may communicated in a number of ways
professional lists, telephone directories, mailings, and electronic mail
275
\_\_\_\_\_\_\_\_\_ are not eligible under Chapter 11 of bankruptcy
Stockbrokers
276
FUTA
credits for this tax are allowed to employers for certain state unemployment taxes paid by the employer
277
Subpart F income example
Services are provided by an Irish company in England under a contract entered into by its US parent
278
If a security becomes worthless in the current taxable year, it is treated as sold or exchanged on:
The last day of the current taxable year
279
what is the tax rate for an S corporation that pays tax on built in gains?
The highest corporate income tax rate
280
Which of the following contractual assignments is prohibitted?
The right to receive royalties
**The right to be insured under a liability insurance policy**
The right to receive installment payments
The rights under an option contract
281
Computer used in the business, held for 4 years
qualifies for treatment under section 1231
282
A personal services corporation may deduct payments made to owner employees only in the year in which the:
owner-employee includes it in income
283
What is a disavantage of a revocable trust?
The trust is included in the gross estate of the grantor
284
The CPA was preparing the financial statement for a limited liability company. To which of the following would the CPA's report be adressed?
Member
285
payment for lease cancellation
included in income
286
private foundation not subject to:
accumulated earnings tax
287
social security benefits do not include:
medicaid
288
An executor of a decedent’s estate that has only U.S. citizens as beneficiaries is required to file a fiduciary income tax return, if the estate’s gross income for the year is at least:
$600
289
Contributions to unemployment insurance:
not taxable
290
A trust in which the beneficiaries are given a future right to trust income or corpus and the $13,000 gift tax exclusion is retained is termed a:
Crummey trust
291
If a tax-exempt organization's unrelated business income is taxed, what tax rates are used?
tax rates for trusts
292
FUTA is a ____ paid text
employer
293
age discrimination
40 and above
where at least 20 people are employed
294
offeror becomes dead or insane
void if acceptance that given yet
295
revocation of contract does not count until:
until person receives the revocation
296
Requirements contracts
company becomes exclusive provider of something in exchange for consideration
\*companies cant get locked into one and then be forced to sell something at an unreasonable price
297
promises to donate =\>
legally enforceable
promissory estoppel
298
invalid contracts
fraud in the execution - void
extreme durress - void
illegal - void
error - void
299
fraud in the execution
didnot know they were signing a contract
300
undue influence
voidable
301
error in contract =\>
unenforceable
302
cosigning and guaranteeing the debt of another =\>
must be in writing
303
how many parties does a promissory note have?
2 parties
304
check is a \_\_\_\_\_\_\_
draft
305
drawer
the person writing the check
you keep your checkbok in your desk DRAWER
306
looks like a check
30 days after date pay to the order of
negotiable time draft
307
blank indorsement
doesnt name a new payee
308
restrictive endorsement
doesnt cancel negotiability
309
who has primary liability on a check?
no one
unless bank certifies funds =\> they are primarily liable
310
by signing =\>
warrant to all future parties
311
by not signing =\>
warrant to next party only
312
holder in due course beats fraud in the \_\_\_\_\_\_\_\_
inducement
313
if maker declares bankruptcy =\>
holder in due course loses right to collect
314
property deeds
must be in writing and signed
description of property
deed must be recorded
315
personal property is both:
tangible and intangible
316
accumulaton of income in what trust is ok?
complex
317
estate tax credits are available for \_\_\_\_\_\_\_
foreign death taxes
318
trust beneficiaries only pay tax if
earnings are distributed
319
estate beneficiaries pay tax
on dni
regardless of distiributions
320
When there has been no performance by either party, which of the following events generally will result in the discharge of a party's obligation to perform as required under the original contract?
both mutual recision and accord and satisfaction
321
The IRS has ______ years to collect after a tax has been assessed
10
322
spenthrift trust bars:
seizure from creditors of the beneficiary
323
collateral trust certificates are considered:
securities
324
Charles and Marcia are married, cash-basis taxpayers. In 2015, they had interest income as follows:
$500 interest on federal income tax refund
$600 interest on state income tax refund
$800 interest on federal government obligations
$1,000 interest on state government obligations
What amount of interest income is taxable on Charles and Marcia's 2015 joint income tax return?
A.
$500
B.
$1,100
Correct C.
$1,900
D.
$2,900
1900
325
