Buck, fearing death from severe injuries suffered in a machinery accident, assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl, a friend, who gladly accepts. Buck ends up recovering from the injuries. Why must Pearl give the certificate of deposit back to Buck?
A. This type of gift is known as a gift causa mortis. It is a conditional gift which is conditioned on Buck actually dying. Because Buck recovered, the gift is automatically revoked.
B. This is an inter vivos gift because Buck was still alive when the gift was made. Any inter vivos gift is revocable because there is no consideration to make Buck's delivery of the certificate binding under contract law.
C. This is an inter vivos gift and due to state laws, gifts in contemplation of death must be written into a valid will or otherwise the deceased's assets will be distributed according to state statute.
D. This gift is an ordinary gift, but it is revocable because we don't know if the certificate of deposit has matured or not.
Answer: A
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All of the following techniques are used to validate electronic data interchange transactions except
a. value added networks can compare passwords to a valid customer file before message transmission b. prior to converting the message, the translation software of the receiving company can compare the password against a validation file in the firm's database c. the recipient's application software can validate the password prior to processing d. the recipient's application software can validate the password after the transaction has been processed
Modigliani Miller (M-M) Proposition II states _____
A) the cost of equity does not change when a firm takes on a greater proportion of debt.
B) the cost of equity increases when a firm takes on a greater proportion of debt.
C) the cost of debt increases when a firm takes on a greater proportion of equity.
D) the cost of equity decreases when a firm takes on a greater proportion of debt.
Itemized deductions are added to the standard deduction to determine total personal deductions
Indicate whether the statement is true or false.
Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The amount of overhead applied to Job M800 is closest to:
A. $1,380 B. $825 C. $270 D. $555