Dentist’s Employment Contract Kills Personal Goodwill Argument – Ninth Circuit Rules Peter J. Reilly on Forbes.com: Tax planners generally think that clients are well served by their thoroughness. I have little doubt that this is generally the case. Every once in a while, though, that little bit of extra work can be counterproductive. In the case of Dr. Howard the extra step, that a less thorough planner might have neglected was the employment contract between Dr. Howard, the dentist and the Howard Corporation of which he was the sole shareholder. The Howard Corporation was a C corporation and when…
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SEC Wakes Up to Reverse Merger Companies Weeks after several Chinese reverse-merger companies have stopped trading in the US amid widespread fraud allegations, the Securities and Exchange Commission has issued a warning that, hey, maybe investors ought to think twice about those reverse-merger companies. Okey doke! Mark Gongloff relays from the Wall Street Journal Law Blog. The Securities and Exchange Commission issued an investor bulletin that said “there have been instances of fraud and other abuses involving reverse merger companies” and that investors “should be careful” when they consider investing in the companies’ stocks. The SEC has said it is investigating the…
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Calculation Engagement vs Valuation Engagement. In April, QuickRead featured some analysis of In Re: Marriage of Hagar in our Case Law—State section. At issue in Hagar was the difference between a Calculation Engagement and a Valuation Engagement. The Calculation Engagement the husband in the case presented was deemed unsuitable by a judge, in this particular case, because it the valuator admittedly didn’t “use judgment.” NACVA member Charlotte Reith, CPA, CVA, CFF, of The Reith Company in Pasadena, CA wrote in to say she thought our analysis “is giving calculation engagements a bad name and is misleading. A rule of thumb valuation [used in Hagar] is not a calculation of…