THE BOEING COMPANY
In January 2007, Matthew Neumann and Nicholas Tides, two Boeing employees, transferred
to the large aerospace companys internal audit department. The two men expected that their
new jobs would put them on a fast track
Enron Corporation Overview From Rise to Downfall:
Enron was created in 1985 by Kenneth Lay with the successful merger of InterNorth and
Houston Natural Gas. Before the company went bankrupt it provided energy, commodities, and
services to public and busin
FIRST KEYSTONE BANK
In January 2010, three tellers of a small branch of First Keystone Bank were arrested by
local law enforcement authorities and charged with embezzling more than $100,000 from the
branchs ATM over a period of two years
UNITED WAY OF AMERICA
Unfortunately, embezzlement and other fraudulent schemes are rife in the charity
industry. More than any other segment of our economy, the charitable sector has been
plundered by con artists and other miscreants in
HOWARD STREET JEWELERS, INC.
A common nemesis of small businesses is employee theft. Small business owners who place
too much trust in their employees can suffer significant financial losses at the hands of
apparently hard-working and tr
THE TROLLEY DODGERS
In this brief case, a longtime and trusted employee of the Los Angeles Dodgers engaged in a
large scale payroll fraud to embezzle funds from the organization. Over a period of several
years, this fraudulent scheme cos
LOCATEPLUS HOLDINGS CORPORATION
The management team of LocatePlus developed a New Age business model but relied on an
old-fashioned fraud scheme to burnish their companys financial statements. LocatePlus
collected a massive database tha
POWDER RIVER PETROLEUM INTERNATIONAL, INC.
Brian Fox, a Canadian with a background in the oil and gas industry, took control of
Powder River in late 2003. Fox became not only the principal stockholder of the small
company but also its CE
CBI HOLDING COMPANY, INC.
Ernst & Young audited the pharmaceutical wholesaler CBI Holding Company, Inc., in the
early 1990s. In 1991, Robert Castello, CBIs owner and chief executive, sold a 48% stake in his
company to TCW, an investment
GOODNER BROTHERS, INC.
Woody Robinson and Al Hunt were lifelong friends. Following graduation from college, Al
went to work for his father-in-law, who owned Curcios Auto Supply, a retail business located in
Huntington, West Virginia. Wit
Employee theft is a widespread and serious problem facing the multitude of small
businesses that play such a critical role in the U.S. economy, which is the key reason that
phenomenon is a focal point of several of
FOAMEX INTERNATIONAL, INC.
In the years leading up to World War II, German scientist Otto Bayer discovered a new
chemical compound that would become known as polyurethane. Polyurethane foam was
developed in the early 1950s when water was
CREVE COUER PIZZA, INC.
In the early 1990s, the accounting profession was shocked when the news media revealed
that for several years a Missouri CPA had funneled confidential financial information regarding a
client to the IRS. The CPA h
WAL-MART DE MEXICO
When Congress passed the Foreign Corrupt Practices Act (FCPA) in 1977, corporate
accountants and independent auditors feared that the new law would create major headaches for
them. That fear was unwarranted . . . at le
Here is a case that many of your students may be able to relate to personally. Two close
friends work together in a clothing store to help defray the cost of their college educations. Paula
is a marke
F&C INTERNATIONAL, INC.
Over two centuries, the Fries family of northern Kentucky and southern Ohio built a dynasty
of sorts in the flavor industry. Alex Fries, a German immigrant with a background in chemistry,
settled in Cincinnati dur
ARVEL SMART, ACCOUNTING MAJOR
This brief case involves an ethical issue that many future accounting graduates have faced
in recent years. Internship programs are an important facet of the recruiting efforts of large
accounting firms. Tho
WILEY JACKSON, ACCOUNTING MAJOR
Similar to many recent accounting graduates, Wiley Jackson served an internship with a
major accounting firm while he was completing his undergraduate accounting degree. On the
final day of his internship,
FREESCALE SEMICONDUCTOR, INC.
Partners and employees of major accounting firms often have access to confidential client
information that they could use to gain an unfair advantage over other stock market investors.
Although the accountin
David Robinson, an audit senior assigned to the audit engagement team for Belot
Enterprises, faces a dilemma common to auditors. Client management has taken an aggressive
position regarding the period-ending balances of
GEO SECURITIES, INC.
In the late 1990s, Geo Companies of North America (GNCA), a small Dallas-based
company, organized a wholly-owned subsidiary, Geo Securities, Inc., to market interests in oil
and gas properties that it owned or contro
ACCT 8816: Federal Taxation
Problem Set 3
1). John, age 43 and single, is the sole proprietor of a construction firm. The firm generated $100,000 in
revenues and $50,000 of ordinary business expenses. During the current year, John donated $500 t
ACCT8816: Federal Taxation
Problem Set 2 Solutions
1). The amount that Green Company should include in gross income is $10,000. Prepaid income from
rents cannot be deferred. However, the prepaid income of $50,000 can be deferred until earned.
ZZZZ BEST COMPANY, INC.
Barry Minkow founded ZZZZ Best Company, a carpet cleaning concern, in 1982 at the age
of 16. Within a matter of months, Minkow was engaging in several fraudulent schemes to raise
working capital for his small comp
A childhood friend summed up the driving force in Bernie Madoffs life: Bernie wanted
to be rich. As a youngster growing up in New York City, Bernie realized that Wall Street was
the greatest wealth creation machine the
DHB INDUSTRIES, INC.
David Brooks founded DHB Industries in the early 1990s. Throughout its existence,
the principal operating unit of DHB was its Point Blank subsidiary that manufactured bulletresistant vests for use by law enforcement
CRAZY EDDIE, INC.
Eddie Antar opened his first retail consumer electronics store in 1969 near Coney Island in
York City. By 1987, Antar's firm, Crazy Eddie, Inc., was a public company with annual sales
exceeding $350 million. The rap
NEW CENTURY FINANCIAL CORPORATION
New Century Financial Corporations bankruptcy filing in April 2007 was the initial incident
in a series of events that would eventually plunge the U.S. and global economies into fullfledged panics. With
AND LOAN ASSOCIATION
The collapse of Lincoln Savings and Loan Association in 1989 was one of the most expensive
and controversial savings and loan failures in U.S. history. Charles Keating, Jr., is seemingly the
ACCT8816: Federal Taxation
Problem Set 1
Team Members: Ying Li,
1). Chapter 17 Discussion Question #2
Cassowary Corporation need to report the ordinary operating income of
$120,000 and tax-exempt interest income of $8,00