Deck 35

Question 1

Sherman Act

Answer 1

prohibits restraints of trade and monopolies

Question 2

Tying arrangements

Answer 2

Must buy one product to get another

Question 3

Congolomerate Merger

Answer 3

Merger between those in different businesses (this is okay)

Question 4

Robinson-Patman Act

Answer 4

Strengthens section 2 of the Clayton Act that prohibited price discrimination

Question 5

A warehouser is liable for loss of stored goods on a showing of:

Answer 5

Ordinary negligence

Question 6

Under a nonnegotiable bill of lading, a carrier who accepts goods for shipment must deliver the goods to:

Answer 6

The consignee of the bill of lading

Question 7

Bailee

Answer 7

The issuer of a document of title (UPS or warehouse man)

Question 8

Consignee

Answer 8

Party named on the document

Question 9

Bearer documents…goods must be

Answer 9

Delivered only to the party possessing the document

Question 10

Order documents… goods must be

Answer 10

Delivered and endorsed

Question 11

The Volker Rule

Answer 11

3% limit in risky assets

Question 12

Orderly Liquidation Authority covers what kind of institutions?

Answer 12

Financial Institutions (banks, insurance companies, and securities companies)

Question 13

Scholarships are taxable if they are used for:

Answer 13

Room and board (nontaxable for books and tuition)

Question 14

Calculation of net earnings from self-employment =

Answer 14

.9235 x total amount of self-employment income

Question 15

Contributing services to a partnership should be recorded at:

Answer 15

FMV as ordinary income

Question 16

Marketable securities are what kind of assets?

Answer 16

Capital assets

Question 17

What kind of deduction is a business gift?

Answer 17

Unreimbursed business expense (itemized deduction)

Question 18

Medical insurance premiums are what kind of deduction?

Answer 18

Deduction from AGI (itemized)

Question 19

Penalties on early withdrawal of savings is what kind of deduction?

Answer 19

Adjustment for AGI

Question 20

Deduction for federal income taxes paid?

Answer 20

No deduction (not included in gross income)

Question 21

Medical expenses in excess of 10% of AGI

Answer 21

Itemized deduction

Question 22

When a corporation assumes a recourse liability, how does that affect the shareholders basis?

Answer 22

Subtract the shareholders basis

Question 23

REalized gain =

Answer 23

FMV - adjusted basis

Question 24

Corporation’s basis =

Answer 24

Usually shareholders carryover basis (add cash paid to the shareholder)

Question 25

Shareholders basis =

Answer 25

Adjusted basis + gain recognized - boot received