QUESTION 32 Beth is cleaning her attic and finds an old painting. Believing that the painting is worthless she sells it to Bob for $100.00. Later she discovers that the painting is really a priceless masterpiece. Beth will be able to: O avoid the contract because of her mistake. not avoid the contract because mistakes in judgment as to value do not permit you to avoid contract. O recover the painting. O recover the value of the painting from Bob.

QUESTION 32 Beth is cleaning her attic and finds an old painting. Believing that the painting is worthless she sells it to Bob for $100.00. Later she discovers that the painting is really a priceless masterpiece. Beth will be able to: O avoid the contract because of her mistake. not avoid the contract because mistakes in judgment as to value do not permit you to avoid contract. O recover the painting. O recover the value of the painting from Bob.

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

MA1. Lance trades a refrigerator that he uses in his tavern for a freezer that Jane has in her basement. The fair market value of the refrigerator is $850, and Lance's adjusted basis is $125. The FMV of the freezer is $850, and Jane's adjusted basis is $175. Lance plans to use the freezer in his tavern. Assume that the exchange is like-kind. What is Lance's realized gain or loss? a. $850 b. $725 c. $0 d. $125
None
A promise to buy "all the oil I need to heat my shop this winter" recites valid consideration. True False 2. Mary threatens Doug with a $50,000 civil lawsuit unless Doug agrees to a settlement of their dispute. Doug argees to a settlement of $25,000. Doug can rescind the settlement agreement because he was under duress at the time. True False 3. "In consideration for you having helped me when I was unconscious, I will give you $100.00." This is a binding promise because there is legally sufficient consideration. True False 4. A minor's right to disaffirm a contract must be exercised while he is still a minor. True False
Solve the below problem. Topic: Benefit and Detriment Analysis
e) Identify the derivative contract which benefits Mr. Zhao from his below story:Zhao, the owner of Healthy Hen Farms, is worried about the recent fluctuations in chicken prices or volatility within the chicken market due to reports of bird flu. Zhao wants to protect his business against another spell of bad news.There is an investor in the market who agrees to pay $30 per bird when the birds are ready for slaughter in six months, regardless of the market price. If at that time, the price is above $30, the investor will get the benefit as they will be able to buy the birds for less than the market cost and sell them on the market at a higher price for a profit. If the price falls below $30, Zhao will get the benefit because he will be able to sell his birds for more than the current marketprice, or more than what he would get for the birds in the open market. Suggest the best derivative contract for Mr. Zhao.
Consider each of the following examples and state whether the contract is valid, void or voidable andbriefly motivate your answer: 1. Hidipo concludes a contract with Sara in terms of which he sells his farm to Sara. While they werenegotiating the contract Hidipo declared that there were 300 000 olive trees planted on the farmwell knowing that there were only 50 000 trees
H6. Denver Inc. has an old computer system. The computer originally costs Denver $90,000 and its current book value is $35,000. Answer the following questions: Do not use the account name of book value. There is no such account name as book value in accounting* 1) What is accumulated depreciation on the Denver's computer? 2) Journal entry if Denver discards the computer (for nothing). 3) Journal entry if Denver sells the computer for $90,000. Show proper calculation
I want to correct answer
If you know the cash value components but are unsure of the noncash value of a job offer, what should you do? O Accept the job but immediately look for a new one. Ask questions about noncash values to get more information. O Turn down the job. O Accept the job and figure it out as you go.
Hoping to increase sales, Festival Cruises began advertising for a “Valentine’s Day Cruise package” which the cruise liner ‘guarantees to be the most romantic experience of you and your partner’s entire life’ and which is guaranteed to ‘rekindle the flame of love in any marriage’. Susan and Mark bought tickets for the cruise, had a big argument, and broke up. Susan wants to sue Festival Cruises for False Misrepresentation.Required: Discuss whether you agree with Susan’s belief that the company is guilty of False Misrepresentation. Give reasons and refer to law.
Suppose a wheat farmer sells a wholesale baker a forward contract. What happens if hail destroys the farmers' crop or if the baker loses a large contract to deliver bread in the future? Will their hedges protect them against these risks? How can they manage these risks?
Solve this question is solution