Herb was interviewed for a job on Wednesday. The employer orally offered Herb a job right on the spot. Herb orally agreed to start working the following Monday, to be employed from that Monday, for one year thereafter. Three weeks after starting the job
Herb was fired without cause and replaced by the employer's friend. Will Herb be successful in an action brought against the employer for breach of contract?
Probably not. The one-year rule would require the contract to be in writing and signed by the employer. It is impossible to perform the terms of the contract within one year from the date the contract was made. Here the contract was made on Wednesday. The one-year period runs from Wednesday until the corresponding date one year later. The terms of the contract however, require performance of the job to start the following Monday for one year. The terms of the agreement exceed the one-year mark measured from the date the contract was formed by several days. Promissory estoppel might be an exception here.
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Rise Corp received payment from its customers for previous sales on credit. What was the impact on its working capital?
a. Increase in working capital b. Decrease in working capital c. No effect on working capital d. Unable to determine
Valarie owns 100% of Green Company. Green has earnings and profits of $10,000. The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie. She must report dividend income of:
A. $9,000. B. $12,000. C. $2,000. D. $10,000.
Lassen Corporation issued ten-year term bonds on January 1, 2010, with a face value of $800,000 . The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31 . The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is to be used. How much bond interest expense (rounded to the nearest
dollar) should be reported on the income statement for the year ended December 31, 2010? a. $48,000 b. $55,422 c. $55,131 d. $55,276
Answer the following statements true (T) or false (F)
1. The FTC Safeguards Rule applies only to firms listed on the NYSE. 2. Downloading of music and movies has become a large problem as more and more Internet users develop attitudes that if the music is there, it is for entertainment purposes and it is free. 3. The European Union’s Electronic Commerce Directive has two treaties that protect the copyrights of intellectual property worldwide on properties such as books, songs, films, and pirated CDs and DVDs. 4. The ultimate goal of phishing is to acquire personal information pertaining to an individual that could be used in the future for illegal activities. 5. Software that can be loaded onto a computer so the computer operations can be monitored by an outside party without the consent of the computer user is called spyware.