Linda Robinson purchased an apartment building in 2010 and decided in 2018 to sell the apartment building. She realized a gain of $400,000. Linda wanted to defer any recognized gain, so she worked with a realtor to identify property that would be eligible for § 1031 like-kind exchange treatment. She found a single-family home in Dallas, TX that was currently being rented by the owner. Linda purchased the single-family house using the proceeds from the apartment building. Because the single-family house qualified as like-kind property, Linda deferred all of her realized gains.

After evicting the occupant and trying to rent the property again for ten months, Linda decided that she could not continue to make the mortgage payments on her primary residence and the rental property. To ease her financial problem, Linda sold her primary residence for a realized gain of $190,000 and moved into the Dallas house. She reported no recognized gain on the sale of her principal residence as the sale qualified for § 121 exclusion treatment. The IRS issued a deficiency notice to Mary associated with the sale of the apartment building. The position of the IRS was that Linda did not hold the single-family residence for investment purposes as required by § 1031. Instead, her intention was personal—to use it as a replacement for her current residence that she planned on selling.

Advise her on who should prevail in the circumstances via a Client Letter after preparing sufficient information in a tax File Memorandum to support your recommendation.

In May 2010, the size of the Greece’s budget deficit increased its probability of default and triggered a crisis across the Eurozone. To decrease the budget deficit, the Greek government proposed many measures. A few of them involved decreasing pension and/or benefits payments to retiree. Use the life-Cycle hypothesis to evaluate the impact of an unexpected decrease in the income of the retirees in Greece.

An investor purchases a bond in 2010 for $1,152.47 and coupon payments are made semi-annually. The par value is $1,000. The annual coupon rate is 10 percent and the annual yield-to-maturity on the bond is 8 percent. Assuming semi-annual compounding, what is the maturity (in years)?

Group of answer choices

a. 18 years

b. 15 years

c. 12 years

d. 10 years

The Patient Protection and Affordable Care Act of 2010 (ACA) and the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) changed the way that healthcare providers are reimbursed in the United States. Both laws attempt to move from a volume-based reimbursement method to a quality-based reimbursement method. For this discussion forum, select one of the two laws and discuss some key points of how the law you selected has changed reimbursement. Consider discussing if we have seen improvements in quality and decreased costs in healthcare since the implementation of the laws.

HC

In May 2010, the size of the Greece’s budget deficit increased its probability of default and triggered a crisis across the Eurozone. To decrease the budget deficit, the Greek government proposed many measures. A few of them involved decreasing pension and/or benefits payments to retiree. Use the life-Cycle hypothesis to evaluate the impact of an unexpected decrease in the income of the retirees in Greece.

How is the Affordable Care Act of 2010 (also known as Obamacare) an example of federalism at work?

Will President Trump's repeal of the individual mandate (included the recent 2017 tax law) undermine or enhance the effectiveness of federalism with regards to the implementation of Obamacare? Obamacare's individual mandate requires that most Americans obtain and maintain health insurance each month or pay a tax penalty.

Early in 2010, Danielle, the chief financial officer for Sam Manufacturing, was given the task of assessing the impact of a proposed risky investment on the firm’s stock value. To perform the necessary analysis, Danielle gathered the following information on the firm’s stock. During the immediate past 5 years (2005–2009), the annual dividends paid on the firm’s common stock were as follows:

Currently, the required return on the common stock is 15%. Danielle’s research indicates that if the proposed investment is undertaken, the 2010 dividend will rise and the annual rate of dividend growth will increase to 14%. She feels that in the best case, the dividend would continue to grow at this rate each year into the future and that in the worst case, the 14% annual rate of growth in dividends would continue only through 2012, and then, at the beginning of 2013, would return to the rate that was experienced between 2005 and 2009. As a result of the increased risk associated with the proposed risky investment, the required return on the common stock is expected to increase by 3% to an annual rate of 18%, regardless of which dividend growth outcome occurs.

Armed with the preceding information, Danielle must now assess the impact of the proposed risky investment on the market value of Sam’s stock. To simplify her calculations, she plans to round the historical growth rate in common stock dividends to the nearest whole percent.

Required

a. Find the current value per share of Sam Manufacturing’s common stock.

b. Find the value of Sam’s common stock in the event that it undertakes the proposed risky investment and assuming that the dividend growth rate stays at 14% forever. Compare this value to that found in part a. What effect would the proposed investment have on the firm’s stockholders? Explain.

c. On the basis of your findings in part b, do the stockholders win or lose as a result of undertaking the proposed risky investment? Should the firm do it? Why?

d. Rework parts b and c assuming that at the beginning of 2013 the annual dividend growth rate returns to the rate experienced between 2005 and 2009.

10. The Wall Street Reform and Consumer Protection Act of 2010 requires that the amount of any interchange transaction fee that an issuer may receive or charge with respect to an electronic debit transaction, including those on debit cards issued by small banks and prepaid reloadable cards, must be reasonable and proportional to the cost incurred by the issuer, as determined by the Federal Reserve.

True

False

12.Chapter 3 of the Bankruptcy Code deals with:

5.Bankruptcy under Chapter 13 differs from Chapter 11 in that: