Joseph is the sole trustee of a trust fund of $1,000,000. By the terms of the trust, he is under a duty to invest the money ‘as if he were absolutely entitled to the assets of the trust’. Ronald, an investment broker, approaches him, who offers to pay him $100,000 ‘no questions asked’ if he invests the trust fund with him. Joseph agrees, and is paid the $100,000. Ronald invests the $1,000,000 on the stock market, eventually losing $700,000. Joseph is now insolvent with only $300,000 remaining, and Ronald has fled the country. Advise the beneficiaries of the trust.

Explain the circumstances under which you feel a consumer bankruptcy is appropriate, and when the ability to have a debt eliminated should be restricted.

On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $392,000. Birch reported a $355,000 book value, and the fair value of the noncontrolling interest was $98,000 on that date. Then, on January 1, 2020, Birch acquired 80 percent of Cedar Company for $228,000 when Cedar had a $204,000 book value and the 20 percent noncontrolling interest was valued at $57,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life.   These companies report the following financial information. Investment income figures are not included.        2019 2020 2021 Sales:             Aspen Company $ 500,000 $ 750,000 $ 825,000 Birch Company   251,500   343,250   627,900 Cedar Company Not available   164,900   246,800 Expenses:             Aspen Company $ 465,000 $ 567,500 $ 632,500 Birch Company   199,000   282,000   555,000 Cedar Company Not available   152,000…

Raphael, a minority shareholder of the Sample Corporation, claims that the following sales are void and should be annulled. Explain whether Raphael is correct. a. Smith, a director of the Sample Corporation, sells a piece of vacant land to the Sample Corporation for $500,000. The land cost him $200,000. b. Jones, a shareholder of the Sample Corporation, sells a used truck to the Sample Corporation for $8,400, although the truck is worth $6,000.