Real Estate Analytics, LLC (REA), a limited liability company, became interested in Theodore Tee Vallas’s 14.13-acre Lanikai Lane property located in Carlsbad, California. REA’s primary goal in purchasing the property was to make a profit for its investors and the company. In March, REA and Vallas entered into a written agreement for Vallas to sell the property to REA. Under the agreement, the sales price was $8.5 million, with REA to pay an immediate $100,000 deposit and then pay $2.9 million at closing. In return, Vallas agreed to finance the remaining $5.5 million, with the unpaid balance to be paid over a five-year period. On June 14, Vallas can- celled the contract. The next day, REA brought a breach of contract action seeking specific performance. Explain whether REA is entitled to specific performance.
> Following are the financial statements of Malkin Inc., of Russia, as at December 31, Year 11: Additional Information . On January 1, Year 11, Crichton Corporation of Toronto acquired 40% of Malkin’s common shares for RUB800,000. . Rele
> On January 2, Year 4, Poplar Ltd. purchased 80% of the outstanding shares of Spruce Ltd. for $2,000,000. At that date, Spruce had common shares of $500,000 and retained earnings of $1,250,000 and accumulated depreciation of $600,000. Poplar acquired the
> Hamilton Importing Corp. (HIC) imports goods from countries around the world for sale in Canada. On December 1, Year 3, HIC purchased 11,300 watches from a foreign wholesaler for DM613,000 when the spot rate was DM1 = $0.754. The invoice called for payme
> At December 31, Year 4, Hein Company owned 90,000 ordinary shares of Jensen Company when the shareholders’ equity of Jensen was as follows: Ordinary shares (100,000 no par value shares issued and outstanding) … $800,000 Retained earnings …………………………………………
> Bagley Incorporated’s statement of financial position as at July 31, Year 4, is as follows: BAGLEY INCORPORATED STATEMENT OF FINANCIAL POSITION At July 31, Year 4 Carrying Amount Fair Value Plant and equipment (net) $913,000 $1,056,000 P
> Identify three line items on each of the statement of financial position and statement of operations for a not for- profit organization that would not typically be seen on or would differ from the financial statements of a profit oriented corporation.
> Richard’s Specialty Foods Inc. (FSFI) operates over 60 shops throughout Ontario. The company was founded by Francois Richard when he opened a single shop in the city of Cornwall. This store sold prepared dinners and directed its products at customers who
> Explain whether the return on net assets would typically be better or worse under the deferral method as compared to the restricted fund method.
> Explain whether the debt-to-net assets ratio would typically be better or worse under the deferral method as compared to the restricted fund method.
> Explain whether the current ratio would typically be better or worse under the deferral method as compared to the restricted fund method.
> Explain how the return on equity for the shareholders of the parent differs depending on whether the gain from an intercompany sale of depreciable assets is an upstream transaction or a downstream transaction.
> Explain how value in use is typically determined for a cash-generating unit.
> Explain how the dollar amounts in the journal entries made by the parent company under the equity method differ depending on whether the gain from an intercompany sale of depreciable assets is an upstream transaction or a downstream transaction.
> In this era of rapidly changing technology, research and development (R&D) expenditures represent one of the most important factors in the future success of many companies. Organizations that spend too little on R&D risk being left behind by the competit
> Several years ago, the Penston Company purchased 90% of the outstanding shares of Swansan Corporation. The acquisition was made because Swansan produced a vital component used in Penston’s manufacturing process. Penston wanted to ensure an adequate suppl
> Tropical Juices Limited (Tropical) was incorporated under Canadian federal legislation two years ago to sell Citrus’s juices in Canada. Citrus Growers Cooperative (Citrus) of the United States and Bottle Juices Corporation (Bottle) of Canada each own 50
> The Sassawinni First Nation is located adjacent to a town in northern Saskatchewan. The Nation is under the jurisdiction of the federal government’s Aboriginal Affairs and Northern Development Canada, and for years has received substantial funding from t
> Briefly describe the trend in reporting of investments in equity securities over the past 15 years.
> L&M Home Health Corporation (L&M) had a checking account with Wells Fargo Bank. L&M engaged Gentner and Company, Inc. (Gentner), to provide consulting services and paid Gentner for services rendered with a check drawn on its Wells Fargo account in the am
> Eldon’s Super Fresh Stores, Inc., is a corporation engaged in the retail grocery business. William Drexler was the attorney for and the corporate secretary of Eldon’s and was also the personal attorney of Eldon Prinzing, the corporation’s president and s
> On September 2, 2015, Levine executed a mortgage bond under which she promised to pay the Mykoffs a preexisting obligation of $54,000. On October 14, 2021, the Mykoffs transferred the mortgage to Bankers Trust Co., indorsing the instrument with the words
> Sandra and Thomas McGuire entered into a purchase and sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, with a down payment of $10,000 and the balance of $65,000
> Kenco buys mobile homes from the factory and sells them to the consumer. Sometimes, it contracts to sell a home that the factory has not yet built. It has a virtually unlimited supply of product. On September 27, Kenco Homes, Inc., and Dale and Debi Will
> Appalachian is a coal hauling company in southern West Virginia. Appalachian purchased four new Mack trucks for off-road coal hauling. Appalachian purchased three of the trucks for $165,000 each and the fourth for $175,000. The trucks were sold to Appala
> Raymond and Sandra Duford purchased a wood- burning stove from Sears. The stove was manufactured by Preway, Inc. At trial, it was shown that Raymond had inadvertently installed the section of the chimney pipe that went through the roof upside down, and a
> Shell Oil Company leased to Flying Tiger Line a gasoline tank truck with a movable ladder for refueling certain types of aircraft. Under the terms of the lease, Flying Tiger was to maintain the equipment in safe operating order, but Shell was obligated t
> Jordan Panel Systems, Inc., ordered custom-made windows from Windows, Inc. The purchase contract provided that the windows were to be shipped properly packaged for motor freight transit and “delivered to New York City.” Windows constructed the windows ac
> James Norwood bought one hundred ninety heifers in Valentine, Nebraska, and then delivered them to Kevin Asbury in Missouri to care for them. Norwood and Asbury were merchants with regard to cattle. While in Asbury’s care, one hundred fifty of the heifer
> John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 31, 2019. On March 22, 2020, after completing the audit
> United Road Machinery Company, a dealer in heavy road equipment (including truck scales supplied by Thurman Scale Company), received a telephone call on July 21 from James Durham, an officer of Consolidated Coal Company, seeking to acquire truck scales f
> Mike Moses purchased a mobile home, including installation, from Gary Newman. Newman delivered the home to Moses’s lot. Upon inspection of the home, Moses’s fiancée found a broken window and water pipe. Moses also had not received keys to the front door.
> Home Indemnity, an insurance company, paid one of its insureds after the theft of his car. The car reappeared in another State and was sold to Michael Schrier for $4,300 by a used car dealer. The dealer promised to give Mr. Schrier a certificate of title
> Seller manufactures furnace-grade carbon black, a filler used in tires and other rubber and plastic products. Buyer was a longtime customer of Seller, purchasing three grades of carbon black for use in numerous rubber products it supplies to customers. B
> In August, Bunge Corporation, a grain dealer, and Recker, a farmer, entered into a written contract under which Recker agreed to sell to Bunge ten thousand bushels of No. 2 yellow soybeans to be grown in the United States at $3.35 per bushel. Delivery of
> Moulton Cavity & Mold, Inc., agreed to manufacture twenty-six innersole molds to be purchased by Lyn-Flex. Moulton delivered the twenty-six molds to Lyn-Flex after Lyn-Flex allegedly approved the sample molds. However, Lyn-Flex rejected the molds, claimi
> On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400. During the first one and one-half months after the purchase, Peckham discovered that the car’s hood was dented, its gas tank contained no baffles, its emergency brake was inoperable
> Construction Associates (CA) was the successful bidder to construct a water supply line for the city of Breckenridge, Minnesota. CA purchased a large amount of polyvinyl chloride pipe manufactured by the Johns-Manville Sales Corporation (J-M) to construc
> Click2Boost, Inc. (C2B), entered into an Internet marketing agreement with the New York Times Company (NYT). Under the agreement, C2B was to solicit sub- scribers for home delivery of The New York Times news- paper by means of pop-up ads on websites with
> Due to high gasoline prices, American Bakeries Company (ABC) considered converting its fleet of more than three thousand vehicles to a much less expensive propane fuel system. After negotiations with Empire Gas Corporation (Empire), ABC signed a contract
> Mariana Deutsch worked as a knitwear mender and attended a school for beauticians. The sink in her apartment collapsed on her foot, fracturing her big toe and making it painful for her to stand. She claims that as a consequence of the injury she was comp
> Defendant, Gray Communications, desired to build a television tower. After a number of negotiation sessions conducted by telephone between the Defendant and Plaintiff, Kline Iron, the parties allegedly reached an oral agreement under which the Plaintiff
> Frank’s Maintenance and Engineering, Inc., orally ordered steel tubing from C.A. Roberts Co. for use in the manufacture of motorcycle front fork tubes. Because these front fork tubes bear the bulk of the weight of a motorcycle, the steel used must be of
> Frederick “Rick” Worrell conducted business as WRL Advertising. However, WRL Advertising was not a legal entity in its own right, but rather a trade name for Wingfield, Bennett & Baer, LLC, which is owned and operated by Worrell. Martha J. Musil, an empl
> Tommy Blair, Sr., was the sole owner and president of Tommy Blair, Inc., d/b/a Courtesy Autoplex. His son, Thomas Blair, Jr., was a management employee who supervised employees within the service department. On September 28, Tommie Lee Patterson entered
> Rubin was driving on one of the city’s streets when he inadvertently obstructed the path of a taxicab, causing the cab to come into contact with his vehicle. Angered by Rubin’s sudden blocking of his traffic lane, the taxi driver exited his cab, approach
> Raymond Zukaitis was a physician practicing medicine in Douglas County, Nebraska. Aetna issued a policy of professional liability insurance to Zukaitis through its agent, the Ed Larsen Insurance Agency. The policy cov- ered the period from August 31, 201
> Sheree Demming—a real estate investor in the business of acquiring properties in the Bloomington, Indiana area for remodeling, renovation, leasing, and sale—engaged Cheryl Underwood’s professional services as a realtor to buy and sell properties on multi
> Danny Del Pilar sustained injuries when his car collided with a delivery van painted yellow—the widely recognized DHL color—and displaying the DHL name and logo. The truck was driven by a driver wearing a DHL uniform and laden with packages destined for
> Hunter Farms contracted with Petrolia Grain & Feed Company, a Canadian company, to purchase a large supply of the farm herbicide Sencor from Petrolia for resale. Petrolia learned from the U.S. Customs Service that the import duty for the Sencor would be
> Joan, a patient confined in a hospital, has a rare disease that is of great interest to the public. Carol, a television reporter, requests Joan to consent to an interview. Joan refuses, but Carol, nonetheless, enters Joan’s room over her objection and ph
> In late 2017 or early 2018, the plaintiff, Lan England, agreed to sell 258,363 shares of stock to the defendant, Eugene Horbach, for $2.75 per share, for a total price of $710,498.25. Although the purchase money was to be paid in the first quarter of 201
> K&G Construction Co. was the owner of and the general contractor for a housing subdivision project. Harris contracted with the company to do excavating and earth-moving work on the project. Certain provisions of the contract stated that (a) K&G was to m
> Walker & Co. contracted to provide a sign for Harrison to place above his dry-cleaning business. According to the contract, Harrison would lease the sign from Walker, making monthly payments for thirty-six months. In return, Walker agreed to maintain and
> On August 20, Hildebrand entered into a written con- tract with the city of Douglasville whereby he was to serve as community development project engineer for three years at an “annual fee” of $19,000. This salary figure could be changed without affectin
> Potomac Electric Power Company (PEPCO) is an electric utility serving the metropolitan Washington, D.C., area. Panda-Brandywine, L.P. (Panda) is a “qualified facility” under the Public Utility Regulatory Policies Act of 1978. In August 1991, PEPCO and Pa
> On behalf of himself and other similarly situated options investors, Rick Lockwood sued defendant, Standard & Poor’s Corporation (Standard & Poor’s), for breach of contract. Lockwood alleged that he and other options investors suffered lost profits on ce
> Members of Local 100, Transport Workers Union of America (TWU), engaged in an eleven-day mass transit strike that paralyzed the life and commerce of the city of New York. Plaintiffs are engaged in the practice of law as a profession, maintaining offices
> In 1952, the estate of George Bernard Shaw granted to Gabriel Pascal Enterprises, Limited, the exclusive rights to produce a musical play and a motion picture based on Shaw’s play Pygmalion. The agreement contained a provision terminating the license if
> On February 9, George Jackson and his neighbors, Karen and Steve Devenyn, drafted and signed a document that purported to convey a seventy-nine-acre parcel of land owned by Jackson. By the terms of the agreement, Jackson wished to reserve a 1.3-acre port
> On July 5, 2009, Richard Price signed a written employment contract as a new salesman with the Mercury Sup- ply Company. The contract was of indefinite duration and could be terminated by either party for any reason upon fifteen days’ notice. Between 200
> In 1963 the Saturday Evening Post featured an article entitled “The Story of a College Football Fix,” characterized in the subtitle as “A Shocking Report of How Wally Butts and Bear Bryant Rigged a Game Last Fall.” Butts was athletic director of the Univ
> Shane Quadri contacted Don Hoffman, an employee of Al J. Hoffman & Co. (Hoffman), to procure car insurance. Later, Quadri’s car was stolen on October 25 or 26. Quadri contacted Hoffman, who arranged with Budget Rent-a-Car for a rental car for Quadri unti
> Katz offered to purchase land from Joiner, and after negotiating the terms, Joiner accepted. On October 13, over the telephone, both parties agreed to extend the time period for completing and mailing the written contract until October 20. Although the o
> After working for the Phelps Dodge Corporation under an oral contract for approximately twenty-three years, Louie E. Brown was suspended from work for unauthorized possession of company property. The next year, Phelps Dodge fired Brown after discovering
> Presti claims that he reached an oral agreement with Wilson by telephone in October 2016 to buy a horse for $60,000. Presti asserts that he sent Wilson a bill of sale and a postdated check, which Wilson retained. Presti also claims that Wilson told him t
> David and Nancy Songer planned to travel outside the United States and wanted to acquire medical insurance prior to departure. They spoke with an agent of Continental who requested that Nancy Songer undergo a medical examination based on a statement that
> Alice solicited an offer from Robett Manufacturing Company to manufacture certain clothing that Alice intended to supply to the government. Alice contends that in a telephone conversation, Robett made an oral offer that she immediately accepted. She then
> Ethel Greenberg acquired the ownership of the Carlyle Hotel on Miami Beach. Having had little experience in the hotel business, she asked Miller to participate in and counsel her operation of the hotel, which he did. He claims that because his efforts pr
> On September 29, just under two weeks before his eighteenth birthday, Bagley, a highly skilled and experienced snowboarder, purchased a season pass from the Mt. Bachelor ski resort. Upon purchasing the season pass, he executed a release agreement as requ
> On April 29, Kirsten Fletcher and John E. Marshall III jointly signed a lease to rent an apartment for the term beginning on July 1 and ending on June 30 of the follow- ing year, for a monthly rent of $525 per month. At the time the lease was signed, Mar
> On June 11, Chagnon bought a used Buick from Keser for $9,950. Chagnon, who was then a minor, obtained the contract by falsely advising Keser that he was over the age of majority. On September 25, two months and four days after reaching his majority, Cha
> The Environmental Protection Agency (EPA) administrator issued an order suspending the registration of the pesticides heptachlor and chlordane under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).Velsicol Chemical Corp., the sole manufac
> Halbman, a minor, purchased a used car from Lemke for $11,250. Under the terms of the contract, Halbman would pay $1,000 down and the balance in $125 weekly installments. Upon making the down payment, Halbman received possession of the car, but Lemke ret
> Williamson, her mortgage in default, was threatened with foreclosure on her home. She decided to sell the house. The Matthewses learned of this and contacted her about the matter. Williamson claims that she offered to sell her equity for $17,000 and that
> Haydocy Pontiac sold Jennifer Lee a used automobile for $21,552, of which $20,402 was financed with a note and security agreement. At the time of the sale Lee, age twenty, represented to Haydocy that she was twenty-one years old, the age of majority, and
> L. D. Robertson bought a pickup truck from King and Julian, doing business as the Julian Pontiac Company. Robertson, at the time of purchase, was seventeen years old, living at home with his parents and driving his father’s truck around the county to dif
> A fifteen-year-old minor was employed by Midway Toyota, Inc. On August 18, 2018, the minor, while engaged in lifting heavy objects, injured his lower back. In October 2018, he underwent surgery to remove a herniated disk. Midway Toyota paid him the appro
> G.A.S. married his wife, S.I.S., on January 19, 2009. He began to suffer mental health problems in 2015, during which year he was hospitalized at the Delaware State Hospital for eight weeks. Similar illnesses occurred in 2017 and the early part of 2019,
> Octavio Sanchez worked as a delivery driver at a Domino’s Pizza restaurant owned by Western Pizza. He drove his own car in making deliveries. His hourly wage ranged from the legal minimum wage to approximately $0.50 above minimum wage. Western Pizza reim
> Universal City Studios, Inc. (Universal), entered into a general contract with Turner Construction Company (Turner) for the construction of the Jurassic Park ride. Turner entered into a subcontract with Pacific Custom Pools, Inc. (PCP), for PCP to furnis
> Between 2015 and 2020, Williams purchased a number of household items on credit from Walker-Thomas Furniture Co., a retail furniture store. Walker-Thomas retained the right in its contracts to repossess an item if Williams defaulted on an installment pay
> Richard Brobston was hired by Insulation Corporation of America (ICA) in 2009 as a territory sales manager but was promoted to national account manager in 2013 and to general manager in 2017. In 2019, ICA was planning to acquire computer-assisted design
> a. Johnson tells Davis that he paid $150,000 for his farm in 2016 and that he believes it is worth twice that at the present time. Relying upon these statements, Davis buys the farm from Johnson for $225,000. Johnson did pay $150,000 for the farm in 2016
> In February, Brady contracted to construct a house for Fulghum for $206,850. Brady began construction on March 13. Neither during the negotiation of this contract nor when he began performance was Brady licensed as a general contractor as required by Nor
> Ben Collins was a full professor with tenure at Wisconsin State University in 2015. In March 2015, Parsons College, in an attempt to lure Dr. Collins from Wisconsin State, offered him a written contract promising him the rank of full professor with tenur
> Vernon and Janene Lesher agreed to purchase an eighteen-acre parcel of real property from the Strids with the intention of using it to raise horses. In purchasing the property, the Leshers relied on their impression that at least four acres of the subjec
> International Underwater Contractors, Inc. (IUC), entered into a written contract with New England Telephone and Telegraph Company (NET) to assemble and install certain conduits under the Mystic River for a lump sum price of $149,680. Delays caused by NE
> Jane Francois married Victor H. Francois. At the time of the marriage, Victor was a fifty-year-old bachelor living with his elderly mother, and Jane was a thirty-year-old, twice-divorced mother of two. Victor had a relatively secure financial portfolio;
> Columbia University brought suit against Jacobsen on two notes signed by him and his parents. The notes represented the balance of tuition he owed the University. Jacobsen counterclaimed for money damages due to Columbia’s deceit or fraudulent misreprese
> Plaintiff, Gibson, entered into negotiation with W. S. May, president of Home Folks Mobile Home Plaza, Inc., to buy Home Plaza Corporation. Plaintiff visited the mobile home park on several occasions, at which time he noted the occupancy, visually inspec
> Kelly-Moore Paint Company, entered into a fifteen-year commercial lease with Osprey, for a property in Edmond, Oklahoma. The lease contained an option for two five-year renewals. The lease required that the Kelly-Moore give notice of its intent to renew
> The Cornillies listed with a real estate agent a home for sale. Patrick and Anne Giannetti offered $155,000 for the home and submitted a deposit in the amount of $2,500. The Cornillies countered this offer with an offer to sell the house for $160,000. Th
> Edith Mitchell, accompanied by her thirteen-year-old daughter, went through the checkout at Walmart and purchased several items. As they exited, the Mitchells passed through an electronic antitheft device, which sounded an alarm. Robert Canady, employed
> Olivo was in the hardware area of a department store. A security guard saw him look around, take a set of wrenches, and conceal it in his clothing. Olivo looked around once more and proceeded toward an exit, passing several cash registers. The guard stop
> John Connelly suffered personal injuries when a tire manufactured by Uniroyal failed while his 1969 Opel Kadett was being operated on a highway in Colorado. Connelly’s father had purchased the automobile from a Buick dealer in Evanston, Illinois. The tir
> On June 30, 2012, Martin Hendrickson and Solveig Hendrickson were married, and on January 3, 2013, a home previously owned by Martin was conveyed to them as joint tenants and not as tenants in common. Solveig Hendrickson paid no part of the consideration
> Kevin Miller bought a house in Atlanta in 2016 and took out a mortgage. He lived in the house until 2019, when he accepted a job in Chicago; from then on, he rented the house. He received a letter demanding payment from a law firm on behalf of the mortga
> First Development Corporation of Kentucky (FDCK) sought to purchase a fifteen-acre parcel of riverfront property owned by Martin Marietta. On May 9, FDCK made an offer to purchase the property for $300,000, which it submitted to Coldwell Banker, Martin M
> While driving his car in Virginia, Carpe Diem, a resident of North Carolina, struck Butt, a resident of Alaska. As a result of the accident, Butt suffered more than $80,000 in medical expenses. Butt would like to know, if he personally serves the proper
> Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later, the Archers sued the Warners in a State court for fraud connected with the sale. The parties settled the law- suit for $300,000.
