Ethics of transaction of sam

Assignment Help Business Management

Reference no: EM1325290

Sam invested $100,000 in TechCo, a startup high technology venture. Four years ago Techno declared bankruptcy. Sam wrote off his $100,000 in worthless securities as long-term capital loss.

This year, Sam receives a $40,000 from the bankruptcy trustee in final settlement of the TechCo's affairs. Sam now realizes he should not have claimed the loss four years ago because the deduction is allowed only if the stock is completely worthless. The $40,000 recovery indicates that the stock was not completely worthless.

Because the three-year statute of limitations has passed, he does not plan to amend his tax return from four years ago. He also decides that the $40,000 is not income in the current year because he is merely recouping some of his original investment. How do you react to Sam's assumptions from an ethical and legal standpoint?

Reference no: EM1325290

Questions Cloud

Personal integration increase effectiveness as team member : Describe how personal integration of this information can increase your effectiveness as a team member.

Causation and the damages in the negligence action : Summarize two cases where punitive damages were awarded- one in which you feel the damages were justified and one when they were not. Explain your answer.

Example of ethical situation from workplace : Give an example of the ethical situation you encountered in workplace and how you reacted.

Define what are several e-business and e-commerce strategies : Explain What are several e-business and e-commerce strategies and applications that should be developed

Ethics of transaction of sam : Sam invested $100,000 in TechCo, a startup high technology venture. How do you react to Sam's assumptions from the ethical and legal standpoint?

Describe the arp process : What is a ARP Request and ARP Reply?What is the broadcast.

How technology is changing competitive business landscape : Explain how technology is changing the competitive business landscape - Technology is an important component of the business environment.

Cultural norms and universality : Can we assume when working with an individual from a diverse culture that all cultural norms apply universally to all people from that culture?

Ethical accounting standards : It is the responsibility of the management to apply accounting standards if communicating with investors and creditors through financial statements. How may an auditor's ethics be challenged while performing the audit?

User Account

All Pages