Jane is fifteen years old. She visited a Grocery (Rip-off) and requested food items, which cost about $100. Jane’s parents are out of town and she is very short on food supplies and as such Rip-off gave to her the much needed groceries. However, when her parents returned home a few days later, they refused to pay for the groceries. They quickly pointed out that Jane is a minor and she does not have any contractual capacity. Advise Rip-off Grocery on this issue.

Jane is fifteen years old. She visited a Grocery (Rip-off) and requested food items, which cost about $100. Jane’s parents are out of town and she is very short on food supplies and as such Rip-off gave to her the much needed groceries. However, when her parents returned home a few days later, they refused to pay for the groceries. They quickly pointed out that Jane is a minor and she does not have any contractual capacity. Advise Rip-off Grocery on this issue.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 31P

See similar textbooks

Similar questions

Holly was injured while working in a factory and received 12,000 as workers compensation while she was unable to work because of the injury. Jill, who was self-employed, was also injured and unable to work. Jill collected 12,000 on an insurance policy she had purchased to replace her loss of income while she was unable to work. How much are Holly and Jill each required to include in their gross income?
Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, has just moved into a bungalow-style, unfurnished home of her own. The house is only a one-bedroom, but the rent is manageable and has plenty of room for Jamie Lee. She decided to give notice to her roommate that she would be leaving the apartment and the shared expenses after the incident with the stolen checkbook and credit cards a few weeks back. Jamie had to dip in to her emergency savings account to help cover the deposit and moving expenses, as she had not planned to move out of the apartment and be on her own this soon. Jamie is in need of a few appliances, as there is a small laundry room, but no washer or dryer, nor is there a refrigerator in the kitchen. She will also need a living room set and a television because the only furniture she currently has is a bedroom suite. Jamie is so excited to finally have the say in how she will furnish the bungalow, and she began shopping for her home as soon as the…
After graduating from college, Shelley Williams held several different jobs but found that she did not enjoy working for other people. Finally, she and Yvonne Hargrove, her college roommate, decided to start a business of their own. They rented a small building and opened a florist shop selling cut flowers such as roses and chrysanthemums that they bought from a local greenhouse. Williams and Hargrove agreed orally to share profits and losses equally, although they also decided to take no money from the operation for at least four months. No other arrangements were made, but the business did reasonably well, and after the first four months had passed, each began to draw out $500 in cash every week. At year-end, they took their financial records to a local accountant so that they could get their income tax returns completed. He informed them that they had been operating as a partnership and that they should draw up formal articles of partnership agreement or consider incorporation or…
On a rainy afternoon two years ago, John Smiley left work early to attend a family birthday party. Eleven minutes later, a careening truck slammed into his SUV on the freeway causing John to spend two months in a coma. Now he can’t hold a job or make everyday decisions and is in need of constant care. Last week, the 40-year-old Smiley won an out-of-court settlement from the truck driver’s company. He was awarded payment for all medical costs and attorney fees, plus a lump-sum settlement of $2,330,716. At the time of the accident, John was president of his family’s business and earned approximately $200,000 per year. He had anticipated working 25 more years before retirement. 10 John’s sister, an acquaintance of yours from college, has asked you to explain to her how the attorneys came up with the settlement amount. “They said it was based on his lost future income and a 7% rate of some kind,” she explained. “But it was all ‘legal-speak’ to me.” Required: How was the amount of the…
Becky, who is pregnant, works for an organization called Publix with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to of unpaid leave after her child is born. 12 days 56 days 12 weeks 30 weeks 11 months
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,200 in child care expenses so that she would be able to work. Of this amount, $600 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,400 from her jewelry business. In addition, she received child support payments of $20,400 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Adrienne is a single mother with a 6-year-old daughter who lived with her during the entire year. Adrienne paid $2,250 in child care expenses so that she would be able to work. Of this amount, $500 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,500 from her jewelry business. In addition, she received child support payments of $20,500 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Katrina, a risk manager for State Farm Insurance, filed a petition in bankruptcy under Chapter 7, seeking to discharge $55,000 in credit-card debts and $35,000 in student loans. Katrina’s husband died and left her with two children, Paula, who attended college, and Dean, who was fifteen years old. According to Katrina, Dean was an "elite" runner who practiced ten to fifteen hours a week and placed first or second at more than forty competitive events. Dean was homeschooled with academic achievements that were average for his grade level. Katrina’s petition showed monthly income of $5,400 and expenses of $5,100. The expenses included annual homeschool costs of $6,200 and annual running expenses of $7,500. The expenses did not include college costs for Paula, or airfare for her upcoming summer trip to Italy, and other items. The trustee allowed monthly expenses of $4,400, with nothing allocated for running expense and asked the court to dismiss the petition. If Katrina qualified…
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,250 in child care expenses so that she would be able to work. Of this amount, $620 was paid to Adrienne's mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,500 from her jewelry business. In addition, she received child support payments of $20,500 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. What amount, if any, of child and dependent care credit can Adrienne claim?
Margaret, age 65, and John, age 62, are married with a 23 -year-old daughter who lives in their home. They provide over half of their daughter's support, and their daughter earned $4,100 this year from a part-time job. Their daughter is not a full-time student. The daughter can/cannot be claimed as a dependent because: She cannot be claimed because she is over 19 and not a full-time student. She can be claimed because she is a qualifying child. She can be claimed because she is a qualifying relative. She cannot be claimed because she fails the gross income test.