During the year, Johnson Corporation had the following income and expenses:Operating income – $1,200,000Salaries & wage expense – $600,000Charitable contributions – $90,000Capital gains – $30,000Depreciation expense – $70,000Dividends from a 25% owned corporation – $120,000Dividends received deduction – $78,000Johnson Corporation’s “Taxable Income before Charitable Contribution Deduction” would be:

John, Abigail and Thomas organized Adams Corporation with authorized voting common stock of $100,000. John received 10% of the capital stock in payment for organizational services that he rendered for the benefit of the newly formed corporation. John did not contribute property to Adams. Abigail and Thomas transferred property in exchange for stock as follows: Abigail – $5,000 A/B; $20,000 FMV; 20% of Adams stock acquired Thomas – $60,000 A/B; $70,000 FMV; 70% of Adams stock acquiredWhat amount of gain did Thomas recognize from this transaction?

Franklin transferred his 60% interest to Pierce Corporation as part of a complete liquidation of the company. In the exchange, he received all of the corporation’s land with a FMV of $800,000. The land had a basis to Pierce Corporation of $1,000,000. Franklin’s basis in the Pierce stock was $900,000. What amount of loss does Pierce recognize in the exchange and what is Franklin’s basis in the land he receives?

Tyler Corporation has income from operations of $192,000, a dividend from a 5% owned corporation of $88,000, business expenses of $168,000 and a dividend received deduction of $44,000. Tyler makes cash contributions of $25,000 to charitable organizations. What is Tyler Corporation’s charitable contribution deduction for the current year?

Grant Corporation has the following income and expenses for the year:  Income from operations                                                            $45,000  Expenses                                                                                        54,000  Dividends received from a 25% owned corporation               40,000What is Grant Corporation’s taxable income/(NOL)?

Franklin transferred his 60% interest to Pierce Corporation as part of a complete liquidation of the company. In the exchange, he received all of the corporation’s land with a FMV of $800,000. The land had a basis to Pierce Corporation of $1,000,000. Franklin’s basis in the Pierce stock was $900,000. What amount of loss does Pierce recognize in the exchange and what is Franklin’s basis in the land he receives?

Sally was sexually assaulted by an unknown man in her apartment during a home invasion. Police investigators interviewed Sally and she agreed to meet with a composite sketch artist to attempt to draw a likeness of the suspect. After the interview, a drawing was made and Sally said the likeness was, “So-so.” In other words, the likeness was not very close but had some resemblance to the suspect. A week later, police had a suspect and a line-up was conducted. Sally was brought in to view the “suspects.”What might an expert say regarding Sally’s eyewitness identification of a suspect in this case?

In regard to court testimony, witnesses must maintain their composure as there is an old saying that “he who loses his temper loses the battle.”

Opinions can only be stated by an expert witness retained either by the prosecution or defense or appointed by the court to make statements about aspects of the case.

What is defined as any intentionally deceptive stated message?