Def Jam Productions contracts with Mainstreet Carrollton (the owner of a nearby parking lot) to provide overflow parking for Def Jam's concert Friday night at the Amp in Carrollton. Their contract contains a provision that states, "In the event the lot is not vacated by Saturday morning in time for the breakfast crowd to arrive at the local restaurants, Def Jam will pay damages in the amount of $1,000." It is difficult to calculate the amount of damages for loss of parking in the lot because it varies from day-to-day, but it ranges from approximately $500 on a slow weekday to $2,000 on the busier weekend days. The damages provision in this contract is O 1) a penalty clause. 2) a liquidated damages clause. 3) an example of consequential damages. 4) a confiscation of property.

Def Jam Productions contracts with Mainstreet Carrollton (the owner of a nearby parking lot) to provide overflow parking for Def Jam's concert Friday night at the Amp in Carrollton. Their contract contains a provision that states, "In the event the lot is not vacated by Saturday morning in time for the breakfast crowd to arrive at the local restaurants, Def Jam will pay damages in the amount of $1,000." It is difficult to calculate the amount of damages for loss of parking in the lot because it varies from day-to-day, but it ranges from approximately $500 on a slow weekday to $2,000 on the busier weekend days. The damages provision in this contract is O 1) a penalty clause. 2) a liquidated damages clause. 3) an example of consequential damages. 4) a confiscation of property.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dr. Superhook, a private towing contractor, has an opportunity for a towing contract with the city over the next 5 years. The contract calls for the city to pay Dr. Superhook $4,000,000 at the start of the contract and nothing for the remainder of the contract. Dr. Superhook estimates that its expenses will be $1,200,000 at the end of each of the 5 years If Dr. Superhook uses IRR to evaluate its opportunities, under what values of the discount rate would the company accept the contract? Briefly explain why.
Substandard Housing is property in violation of the California state or local health and safety codes as determined by city or county regulatory agencies. Which of the following is true regarding deductions for expenses for substandard property? A. Deductions for expenses for substandard property are allowed B. When the property is noncompliant for part of a year, the Franchise Tax Board (FTB) disallows the deductions for the entire year C. Deductions are allowed for a property only after the regulatory agency re-inspects the property and issues a Notice of Compliance D. Deductions are allowed for a substandard property after repairs are complete
Ee 381.
Machine Corp. has several pending lawsuits against its company. Review each situation: A. A pending lawsuit, claiming $120,000 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. B. Machine Corp. believes there might be other potential lawsuits about this faulty machinery, but this is unlikely to occur. C. A claimant sues Machine Corp. for damages, from a dishonored service contract agreement; the plaintiff will likely win the case but damages cannot be reasonably estimated. D. Machine Corp. believes a customer will win a lawsuit it filed, but the outcome is not likely and is not remote. It is possible the customer will win. 1 and 2. Which of the above situations require recognition in the financial statements and which require note disclosure only? a. A must be recognized and requires note disclosure; C and D require note disclosure only. b. All four cases require note disclosure only. c. A, C, and D must be recognized; B requires note…
Please do not give solution in image format ?
Walmart is suing Elon Musk’s electric vehicle and clean energy company after Tesla solar panels atop seven of the retailer’s stores allegedly caught fire, according a court filing. The Walmart suit alleges breach of contract, gross negligence and failure to live up to industry standards. Walmart is asking Tesla to remove solar panels from more than 240 Walmart locations where they have been installed, and to pay damages related to all the fires Walmart says that Tesla caused. The Walmart suit, filed in the state of New York, alleges that: “As of November 2018, no fewer than seven Walmart stores had experienced fires due to Tesla’s solar systems - including the four fires described above and three others that had occurred earlier.” The filing details evacuations, damaged property and inventory. Tesla’s stock dropped more than 1% after hours on the news. Walmart claimed, among myriad complaints, that “Tesla routinely deployed individuals to inspect the solar systems who lacked basic…
2. A warehouse owned by Martha and used in her business (i.e., to store inventory) is being condemned by the city to provide a right-of-way for a highway. The warehouse has appreciated by $180,000 based on Martha’s estimate of its fair market value. In the negotiations, the city is offering $35,000 less than what Martha believes the property is worth. Alan, a real estate broker, has offered to purchase Martha’s property for $20,000 more than the city’s offer. Martha plans to invest the proceeds she will receive in an office building she will lease to various tenants. Identify the relevant tax issues for Martha. Would the answer in part (1) change if Martha’s warehouse was property being held for investment rather than being used in her business? Explain.
(Related to Checkpoint 5.2) (Future value) Bob Terwilliger received $15,209 for his services as financial consultant to the mayor's office of his hometown of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 4.32 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 150 years. How much money will the city receive in 150 years from Bob's generosity? The amount of money the city will receive in 150 years from Bob's generosity is $ (Round to the nearest cent.)
Mississippi Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. Required: 1. The likelihood of a payment occurring is probable, and the estimated amount is $1.24 million. 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.04 to $1.24 million. 3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.24 million. 4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.24 million. Record the necessary entry for the scenarios given above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)
Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each tonne of pollution dumped into the river. The government will sell 40 pollution permits for $75 each. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. Between the cost of permits and the cost of eliminating pollution, the likely outcome is Firm A spends and Firm B spends cross out $4000; $3500 cross out O b. $3000; $2500 cross out O c. $3000; $3500 cross out O d. $4000; $2500 cross out O e. $5000; $2500 cross out O f. $5000; $3500
Which one of the following costs is most likely to be deductible? Group of answer choices Fines paid for dumping toxic waste into a City of Denver park. Bribes to a city health inspector to ensure an “A” rating to a restaurant. The telephone bill for the headquarters of an illegal stolen car parts organization. Advertising costs for a Colorado marijuana dispensary.
To improve its recreation facilities and to reduce its unemployment rate, Empire State created theTiconderoga Trails Special Revenue Fund. By law, all traffic fines collected by the state policewere directed to be deposited into the Ticonderoga Trails Special Revenue Fund, and used only to payfor the supplies and salaries of individuals employed to create new hiking trails in TiconderogaState Park. There was no balance in the fund at the beginning of 2021. The Fund had the followingtransactions and events during the calendar year.1. The legislature adopted and the governor approved a budget. Estimated traffic fine revenueswere $1,500,000. Appropriations were for parks and recreation program salaries of $1,300,000and for parks and recreation program supplies of $180,000.2. Received traffic fine revenues of $1,520,000 during the year.3. Paid salaries of $1,250,000 during the year.4. Incurred a liability of $30,000 for salaries earned by employees during the last work week inDecember that…