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Black-Scholes Option Pricing Model Used to Determine Reasonable Compensation

The U.S. Tax Court determined that the amount Menard Inc. paid to its controlling shareholder as compensation and deducted on its 1998 federal tax return under sec. 162 was unreasonable.

Roger Edmondson v. American Motorcycle Association, Inc.

The U.S Court of Appeals for the 4th Circuit reversed the lower court award of damages for conversion of an interest in a joint venture to host and promote amateur and professional motorcycle racing.

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