In the case of a nonshipment contract, risk of loss passes to the buyer upon actual receipt of goods:
A) only if the seller is a merchant
B) only if the seller is a nonmerchant
C) only if the buyer has already paid for them
D) in all nonshipment contracts
A
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Laurie's Lawn Service, Inc., purchases a heavy-duty tri-cut lawn mower on March 17, 2019, for $5,500. Under a special election, Laurie's expenses the $5,500 cost of the lawn mower in 2019. In July, a tire on the lawn mower is repaired at a cost of $450. Maintenance costs on the lawn mower for 2019 total $175. What is Laurie's basis in the lawn mower at the end of 2019?
A. $- 0 - B. $450 C. $5,500 D. $5,950 E. $6,125
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