In 1992, Mark Cummings entered into a contract with Asilomar, a licensed contractor, to construct a single-family home. Asilomar substantially completed construction by June 2, 1992. Cummings then occupied the home until November 1998, when he sold the property to the Maycocks.? After moving into the home, the Maycocks experienced problems with the residence. They noticed movements in the slab
and walls throughout the home, as well as buckling in walls and sagging and cracking of the garage floor. In September 2000, Tom Thomas, a civil engineer hired by the Maycocks to evaluate the property, concluded that the unusual movements in the structure indicated inadequate compaction of the backfill soils during construction. The Maycocks filed suit against Asilomar in January 2001, alleging negligence and breach of express and implied warranties. Asilomar says that since it did not sell the home to the Maycocks it is not liable, and that there has been too much time that has passed to allow the Maycocks to recover.
A)Asilomar is excused from liability because the Maycocks were not the original dwellers in the home.?
B)?Asilomar is liable for the problems because the Maycocks were the owners of the home after it was built.
C)?Asilomar is not liable because the implied warranty of habitability expires after one year.
D)?The implied warranty of habitability ends after it is owner occupied.
B
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Your uncle just won the weekly lottery, receiving $375,000, which he invested at a 7.5% annual rate. He now has decided to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative? (Hint: Round down to the nearest whole number.)
A. 22 B. 23 C. 24 D. 25 E. 26
The income statement of a service company will most likely include ________.
A) salaries expense B) factory overhead C) cost of goods sold D) direct materials
Quality Heating Company has the following liabilities at year end: Notes Payable $20,000 Accounts Payable 15,000 Unearned Contract Revenue 9,000 Wages Payable 2,900 Interest Payable 700 Income Taxes Payable 1,500
a. Which of these accounts probably was created at the end of the fiscal year as a result of an accrual? Which probably was adjusted at year end? Explain your answer. b. Which adjustments probably reduced net income? Which probably increased net income? Explain your answers.
Each of the following is a feature of internal control except
A) management planning. B) periodic independent verification. C) limited access to assets. D) authorization of transactions.