What did the appeals court rule when a used-car dealer was sued for fraud?
A) The legitimate goal of requiring citizens to investigate the claims of potential dishonest
sellers would be thwarted if the court allowed buyers to ignore the significance of "as-is"
clauses in sales contract.
B) The use-car dealer was guilty of fraud, but since the sales contract contained an "as is"
clause, recovery was limited to the value of the two vehicles traded in and the cash used
to purchase the Chevrolet Suburban truck.
C) The "as is" clause in the contract relieved the seller of any civil liability based on fraud or
breach of contract.
D) The verdict of the jury in the trial court awarding compensatory damages, attorney's fees,
and punitive damages would accomplish the legitimate state interest in punishing the
defendant and deterring its future conduct.
D
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Norwood, Inc purchased a crane at a cost of $80,000 . The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation. The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017. Refer to the information for Norwood, Inc Based on this information, what method of depreciation will produce the maximum
depreciation expense in 2016? a. Straight-line b. Double-declining-balance c. Units-of-production d. All methods produce the same expense in 2016.
The condition of plenty or surplus and competition allows everyone to get what they want; this is a condition of free market capitalism.
Answer the following statement true (T) or false (F)
Receivables can be used to generate cash through two general categories of transactions: 1 . A secured borrowing 2 . A sale of the receivables. Both of these types of transactions require a transfer of the receivables to a new holder, typically a
financial institution. A sale of receivables results in the receivables being removed from the books of the transferor and the recognition of gain or loss. From the transferee's standpoint, a sale of receivables results in the receivables being recorded on its books at their fair value. Required: Identify the conditions that must exist for a transfer of receivables to be accounted for as a sale.
Temporary accounts include all of the following except:
A. Rent expense. B. Dividends. C. Prepaid rent. D. Consulting revenue. E. Income Summary.