Explain the difference between the following situations:     Lois sells a letter written to her by President Ronald Reagan in 1982 to a collector for $5,000.     Lois sells a signed copy of the book To Kill a Mockingbird, which she purchased in 1980 for $5 to a collector for $5,000.

Landlord leased her suburban ice cream parlor for three years at a rent of $2000 a month toBaskin. Six months later, Baskin transferred his interest in the lease to Herrell. One year later,Herrell transferred his interest in the lease to Ana. Now, none of the parties is paying the rent.Landlord wants to sue Herrell for the rent, "because he is the only one who can probably paythe rent that is due." In order to sue Herrell for the remaining rent, Landlady will have to prove:a-That the transfers from Baskin to Herrell, and from Herrell to Ana, both conveyed the fullremaining interest in the leasehold.  b-That the transfer from Baskin to Herrell conveyed the full remaining interest in the lease leasehold, but the transfer from Herrell to Ana conveyed less than the full remaining interest in thec-That the transfer from Baskin to Herrell conveyed less than the full remaining interest in the leasehold, but the transfer from Herrell to Ana conveyed the full remaining interest in the lease. d-…

Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess $3,300 Physical damage to her arm caused by the collector $15,000 Loss of income while her arm was healing $6,000 Punitive damages $80,000 Question Content Area a.  Regarding Leigh's settlement, classify the following as either "Included in" or "Excluded from" her gross income.     Included in/Excluded fromIncome • Damage to her automobile that the collector attempted to repossess   • Physical damage to her arm caused by the collector   • Loss of income while her arm was healing   • Punitive damages     Question Content Area b.  Assume that Leigh also collected $25,000 of damages for slander to her personal reputation caused by the bill collector misrepresenting the facts to Leigh's employer and other creditors. Is this $25,000 included in Leigh's gross income?

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Jessica is a professional consultant. She agrees to consulting services for Joe for $2,000. After she finishes, Joe does not have cash to pay Jessica, but he has an antique, collectible baseball card with a fair market value of $2,000 that he gives her to satisfy the payment. The baseball card cost Joe $500. How much should Jessica include in her gross income?

Nell, Nina, and Nora Potter, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The selling price is $960,000, selling expenses and legal fees are $63,000, and the adjusted basis is $120,000 (the fair market value of the residence when inherited from their parents 25 years ago; they made no capital improvements during the time they held the residence). The sisters plan to move into rental housing and not acquire another residence. Nell has contacted you on behalf of the Potters regarding the tax consequences of the sale.a. Write a letter to Nell advising her of the tax consequences and how taxes can be minimized. Nell’s address is 100 Oak Avenue, Billings, MT 59101.b. Prepare a memo discussing your approach to the situation for the tax files.

Quince owns a used-car lot where Ray works as a salesperson. Quince tells Ray not to make any warranties for the cars. To make a sale to Sylvia, however, Ray adds a 50,000-mile warranty. Later, Sylvia sues Quince for breach of warranty. Quince may hold Ray liable for any damages he must pay to Sylvia under which remedy:   a. indemnification   b. avoidance   c. constructive trust   d. accounting

Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later, Stacy filed a voluntary petition in bankruptcy. At this time, Stacy still owed Jessica $2,000 for the purchase price of the goods, the value of which was $1,500. a. May the trustee invalidate Jessica’s security interest? If so, under what provision? b. If the security interest is invalidated, what is Jessica’s status in the bankruptcy proceeding? c. If the security interest is not invalidated, what is Jessica’s status in the bankruptcy proceeding?

Dan sells his expensive sports car to his brother for $100. The next week, Dan files for bankruptcy under Chapter 7. Regarding the sale of the car, the trustee may 1) not cancel it, but can sue Dan's brother for return of the $100. 2) cancel it as a voidable preference. 3) not cancel it because it is a sale, not a gift. 4) cancel it as a fraudulent transfer.

Vera owns a small shop selling stationeries in Ma On Shan. She wants to retire. She placed a notice in front of her shop which reads: “Shop for sale, HK$3,000,000 for the shop premise and HK$25,000 for all the stationeries in the shop. Can be purchased separately." Iris saw the notice in front of the shop. She has a stationeries shop in Shatin and wanted to buy all the stationeries in Vera's shop. She approached Vera and gave her two cheques of HK$3 million and HKS25,000 informing her that she intended to buy the shop and all stationeries. They agreed to sign two separate contracts for the two sale transactions. Explain to Iris whether the two contracts are governed by the Sale of Goods Ordinance.