ARTICLE BRIEF - Essay Example

Comments (0) Cite this document
A future contract is a contract between two individuals or parties to sell or buy assets for a cost fixed upon today with payment and delivery occurring at a future date. In this case, according to Clark Ghosh (2004), contracts are negotiated and agreed upon at future exchanges…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
Read TextPreview

Extract of sample "ARTICLE BRIEF"

Future Contract Loss Introduction A future contract is a contract between two individuals or parties to sellor buy assets for a cost fixed upon today with payment and delivery occurring at a future date. In this case, according to Clark Ghosh (2004), contracts are negotiated and agreed upon at future exchanges that act as a trading place between the seller and the buyer.
Haig Simmons case
Haig Simmons engaged herself in a future contract that made her incur a loss due to fluctuations in price of the commodity. I this case, the loss incurred by Haig Simmons can only be classified as an ordinary loss. Similar observation was reached by the USA supreme in the case Corn Products Refining Co. v. Commissioner, 350 U.S. 46 (1955). According to the ruling, capital assets include the property held by the taxpayer but does not include goods in trade or assets held by the taxpayer for the primary purpose of resale. It is, therefore, viable to conclude that Haig Simmons did not incur a loss on capital and hence the loss is categorized as ordinary.
The Supreme Court held the verdict of the Court of Appeals and the Tax Court that the petitioner’s future business transactions are designed to caution its manufacturing business against the price increase that would reduce the profit margin. In this case, Anderson (2001) declares that the loss emanating from such transactions should be included as an income when determining the tax payable.
Similar ruling was made on March 7, 1988 in the case Arkansas Best Corp. v. Commissioner, 485 U.S. 212 (1988). In the case, the court noted that future transaction had a consistent trend of giving rise to huge gains that went untaxed. The court therefore held that the petitioner should be slapped with a tax burden with the future loss as part of taxable income.
In conclusion, losses emanating from future contracts form a part of the loss on inventory and hence the amount in the transaction should be incorporated as an income to the enterprise but not as a loss on capital.
Anderson, N. (2001). H & R Block 2002 income tax guide. New York: Simon & Schuster.
Top of Form
Bottom of Form
Clark, E., & Ghosh, D. (2004). Arbitrage, hedging, and speculation the foreign exchange market. Westport, Conn.: Praeger Read More
Cite this document
  • APA
  • MLA
(“ARTICLE BRIEF Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
ARTICLE BRIEF Essay Example | Topics and Well Written Essays - 250 words. Retrieved from
(ARTICLE BRIEF Essay Example | Topics and Well Written Essays - 250 Words)
ARTICLE BRIEF Essay Example | Topics and Well Written Essays - 250 Words.
“ARTICLE BRIEF Essay Example | Topics and Well Written Essays - 250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Inquiry Brief

...medical advancements and biomedical progress outweigh the controversial ethical and moral acts made in stem cell research? My argument is that medical and social benefits stem cell research brings to humanity the past progress and future development of the research. For the purpose of the analysis and argument on stem cell research, three academic sources were selected. The article by L. Leydesdorff and I. Hellsten “Metaphors and Diaphors in Science Communication: Mapping the Case of Stem-Cell Reseach” in Science Communication examine the term “stem cell” and how it varies in different contexts of research, applications and policy debates. From the very beginning, authors emphasize the pressing importance of stem...
2 Pages(500 words)Essay

Case Brief

...CASE BRIEF: BARBARA A. BOTIS v. E OF GARY A. KUDRICK FACTS: Plaintiff, Barbara A. Botis filed a complaint against the E of Gary A. Kudrick in attempt to receive palimony. Plaintiff argues that her and Kudrick were in a “marriage-type relationship” before his death, and, therefore, has rights to palimony in the form of his two residences and other compensation. Defendant denies that they were ever in such as relationship and motions to dismiss her complaint along with issuing counterclaims against the plaintiff. While the law recognizes the right to palimony for two unmarried individuals who separate, a recent amendment requires the palimony agreement in writing. While the plaintiff does not have her palimony agreement...
2 Pages(500 words)Case Study

Type a brief (1 page) abstract of the article (summary), over view based on as much of the article as possible

...MOTOR SPEECH LEARNING What is more important to a growing child than learning to speak? Speech is how humans communicate with one another and share lifes tragedies and joys. Without speech, a child is isolated. That is why a great deal of clinical research has arisen focusing on the best ways to teach children who have problems speaking properly. Some researchers believe that only oral exercises can help, others believe that non-oral motor exercises can also be useful in assisting children to learn to speak. That is the subject of this fascinating article. There are a number of problems that may affect a childs ability to speak: a cleft palate, for example. These kinds of physical limitations may require special...
1 Pages(250 words)Assignment

Do a Case Brief of a news article

...Case Brief It was in the year 2001 that, Betty Dukes, working as a cashier at Wal-Mart in Pittsburg, California, sued the company. She claimed that she had been denied opportunities to advance even though she had been consistently receiving good performance reviews. Brad Seligman, the attorney who was representing her, claimed that this was a common pattern of sexual discrimination which reflected the corporate culture of the retailing giant – Wal-Mart. The Washington Post reports that this case filed by Dukes has now been circulating in courts for about 10 years. The allegations that have been brought to court comprise of detailed testimonies from managers at Wal-Mart, who claimed to have visited strip clubs to conduct...
2 Pages(500 words)Case Study


...Brief on the Negligence Case Perin v. Hayne (1973) 131 Cal. App. 3d 38, 182 Cal. Rptr. 225 (1982) I Background This case represents appeal from a directed verdict involving a doctor’s malpractice practice. The claim is due to the anterior cervical fusion done on Hene Perin, the plaintiff, by Robert Hayne, the defendant. The fusion exercise was medically successful; but the plaintiff alleged that she experienced vocal chord paralysis due to injury during surgery on the right recurrent laryngeal nerve. The injury minimized her voice to whisper which is hoarse. II Procedural History Perin sought damages based on three issues; battery, specific negligence, res ipsa loquitur and preach of express warranty. The plaintiff argued... on the...
1 Pages(250 words)Assignment

Research Brief

... Module The types of HRD interventions are made use of in the 21st century implying the fact that there are several training delivery options that are utilized beyond the conventional training systems. The major issue the various types of HRD interventions deal with are to provide solutions that are successful in attesting to the valuing of creativity in not only delivery but also in training design (Abdullah. 2009). Furthermore, the problems in relation with the social issues taking place among the members of an organization including not only group dynamics and communication but also leadership and decision making. The types of HRD interventions are classified into individual based, group based and inter group based... Module The types of...
2 Pages(500 words)Essay

Creative Brief

...Creative Writing Energy drink- Redbull Redbull is one of the top rated energy drinks in entire world. It has taken the entire market by storm since its introduction into the market more than 30 years ago due to its great taste and low price which increases its affordability. The energy boost is best preferred due to its moderate caffeine content of 80mg. the product has undergone product differentiation making it one of the energy drinks with large number of brands. This offers the customers with a wide variety to choose from. Despite the large increase in its market, there is an urgent need to attract as well as venture into new markets that are not yet fully exploited in the some cities in Europe. The target market is the city... Writing...
2 Pages(500 words)Case Study

Issue Brief

... Issue Brief Issue: Austin is has been experiencing a significant decline in African-American population for the past few decades. Background: Austin, Texas was founded in 1839, one amazing historical fact is that it was the only state to exist a decade-long as a republic afore becoming a state. 1836 to 1846 Texas existed as a sovereign state. Texas gained independence from Mexico’s governance in 1836, there was need to come up with a City for the honor of Stephen F. Austin who was known as the father of Texas. Racial segregation was severe in the city in early twentieth century, however racial relation improved during the Civil Rights era. It this relation Austin, Texas made history as the first southern university to admit black...
3 Pages(750 words)Research Paper


...Article Brief al Affiliation Article Brief The article is about a case law concerning the treatment of federal income taxes in personal injury and wrongful death litigations in state courts. There has been widespread appreciation of the tax-advantaged status of compensatory damages in personal injury and wrongful death litigation in relation to federal personal income taxes. Some state courts adjust this award owing to its tax-advantaged status with varying reasons. Also, the state courts differ on whether the jury need to be informed of the tax treatment by the court citing various justifications that vary with the court. The authors examined the state case law on this subject but excluded other forms of taxes with the exception... of...
2 Pages(500 words)Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic ARTICLE BRIEF for FREE!

Contact Us