What is contract consideration?
What will be an ideal response?
Consideration must be given before a contract can exist. Consideration is defined as something of legal value given in exchange for a promise. Consideration can come in many forms. The most common types consist of either a tangible payment, e.g., money, property, or the performance of an act, e.g., providing legal services. Less usual forms of consideration include the forbearance of a legal right, e.g., accepting an out-of-court settlement in exchange for dropping a lawsuit, and noneconomic forms of consideration, e.g., refraining from "drinking, using tobacco, swearing, or playing cards for a specified time period." Written contracts are presumed to be supported by consideration.
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The predetermined overhead allocation rate is calculated by dividing ________.
A) the total estimated overhead costs by total number of days in a year B) the estimated amount of cost driver by actual total overhead costs C) the actual overhead costs by actual amount of the cost driver or allocation base D) the estimated overhead costs by total estimated quantity of the overhead allocation base
Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2019.
A. Gain on installment sale in2019 deferred until 2020. B. Interest received from municipal bonds in 2019. C. Federal income tax refunds from tax paid in prior years. D. Additional first-year (bonus) depreciation deduction claimed in 2019. E. Loss on sale between related parties in 2019. F. Meal expense not deducted in 2019 because of the 50% limitation. G. Cash dividends distributed to shareholders in 2019. H. Premiums paid on key employee life insurance policy (assume no increase in cash surrender value of policy) in 2019. I. Section 179 expense in second year following election. J. Gain realized but not recognized in a like-kind exchange transaction in 2019.
Bonds that were authorized on January 1 . 2014, and that pay interest on January 1 and July 1 of each year were issued on October 1 . 2014 . If the issuer's accounting year ends on December 31 . how many months would any discount or premium be amortized in 2014?
a. 12 months b. 9 months c. 6 months d. 3 months
All of the following are elements of the mutuality marketing principle EXCEPT ______.
A. make products safe and functional B. match the price with the product value C. provide all the information that consumers want D. don’t subvert the interests of buyers