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The tax planning strategy of putting off paying the tax for 10 years so that you may earn enough interest on the unpaid tax to pay the tax bill is an example of which of the following tax planning strategies:

All chemical reactions that occur within body cells is referred to as _____________.

The cell type found in nervous tissue is the _________.

“Head of household” status is available to a taxpayer:

The cell type found in nervous tissue is the _________.

Groups of cells that are similar in structure and function are called:

[Machine Malfunction] Michael, the president of a health club operation called Head-to-Toe Health Club, convinced the board of directors to approve a large purchase of a certain fitness machine called “Perfect Body.” Michael had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that “Perfect Body” was actually a very dangerous machine that should not be used. The manufacturer of “Perfect Body” went bankrupt, and Head-to-Toe lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Michael and the directors. In an attempt to appease the ring leader of the shareholders, Simone, the board of directors agrees to allow her to purchase stock of the company at below its fair market value. Simone purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Michael and the board members. Under which of the following should Michael and the board of directors defend themselves in an action brought by shareholders for harming the corporation?

Congratulations!  You are now finished with unit 1!   

“Head of household” status is available to a taxpayer:

[Big Spender] Ryan was a partner in ZYX law firm. He decided to withdraw from the partnership because he wanted to retire early in Costa Rica. The partnership agreement of ZYX law firm did not specify the objective or duration of the partnership. Although Ryan gave proper notice, the other partners claimed that he had no right to withdraw. Ryan was angry and decided to get even. Two days after he withdrew and before the partnership had provided notification to any suppliers of his departure, Ryan went to the office supply store at which he typically purchased supplies on account for the firm. He purchased several cameras, a computer, and other items, which he placed on the firm’s account. Ryan just smiled when Joe, the manager at the store, told Ryan that he really appreciated the law firm’s business. The next day Ryan headed for Costa Rica and cannot be located. Joe later requests that ZYX firm pay the bill for Ryan’s purchases. The law firm, whose members had decided to continue the partnership after the dissolution resulting from Ryan’s resignation, refused on the basis that Ryan had no authority to make the purchases. Joe says that he did not know that and that he expects to be paid immediately. Which statement is true regarding whether Ryan had actual authority to bind the partnership in regard to his purchases at the office supply store?