Priya is sitting at her desk. On her computer screen are several documents for a project that she is supposed to have finished by 2:00 p.m. She is staring at the screen and has her hand on her mouse, but she is thinking about the after-work party she has been invited to. Her colleague Damien walks by and snaps his fingers. "Earth to Priya!" he says. Priya is engaged in
A. daydreaming.
B. looking busy.
C. satisficing.
D. moonlighting.
E. exit.
Answer: A
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A) GATT B) the WTO C) NAFTA D) the EU E) CAFTA
Brad was having financial difficulties and thought bankruptcy might be in his future. He transferred his sports car to his brother with the agreement that if he didn't file for bankruptcy within the next 18 months, his brother would return the car to him. Brad did file for bankruptcy in ten months. The bankruptcy trustee can bring the car back into Brad's estate for the purpose of providing
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Elaine loaned her brother, Mike, $175,000 to purchase a new home. Elaine does not charge Mike any interest on the loan. What are the tax consequences to Elaine and Mike?
A. If Mike has no net investment income, Elaine does not have to treat the forgone interest as a gift. B. Mike can deduct the interest that he is deemed to have paid Elaine. C. Elaine is treated as having made a gift of the forgone interest on the $175,000 loan to Mike. D. Elaine only has to impute interest on $75,000 of the loan to Mike.