Deck 35 Flashcards
Sherman Act
prohibits restraints of trade and monopolies
Tying arrangements
Must buy one product to get another
Congolomerate Merger
Merger between those in different businesses (this is okay)
Robinson-Patman Act
Strengthens section 2 of the Clayton Act that prohibited price discrimination
A warehouser is liable for loss of stored goods on a showing of:
Ordinary negligence
Under a nonnegotiable bill of lading, a carrier who accepts goods for shipment must deliver the goods to:
The consignee of the bill of lading
Bailee
The issuer of a document of title (UPS or warehouse man)
Consignee
Party named on the document
Bearer documents…goods must be
Delivered only to the party possessing the document
Order documents… goods must be
Delivered and endorsed
The Volker Rule
3% limit in risky assets
Orderly Liquidation Authority covers what kind of institutions?
Financial Institutions (banks, insurance companies, and securities companies)
Scholarships are taxable if they are used for:
Room and board (nontaxable for books and tuition)
Calculation of net earnings from self-employment =
.9235 x total amount of self-employment income
Contributing services to a partnership should be recorded at:
FMV as ordinary income
Marketable securities are what kind of assets?
Capital assets
What kind of deduction is a business gift?
Unreimbursed business expense (itemized deduction)
Medical insurance premiums are what kind of deduction?
Deduction from AGI (itemized)
Penalties on early withdrawal of savings is what kind of deduction?
Adjustment for AGI
Deduction for federal income taxes paid?
No deduction (not included in gross income)
Medical expenses in excess of 10% of AGI
Itemized deduction
When a corporation assumes a recourse liability, how does that affect the shareholders basis?
Subtract the shareholders basis
REalized gain =
FMV - adjusted basis
Corporation’s basis =
Usually shareholders carryover basis (add cash paid to the shareholder)
Shareholders basis =
Adjusted basis + gain recognized - boot received
