Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 16, Problem 28P
a.
To determine
Provide information on the net result of the transaction if Mr. F decides to treat the right of first refusal as an option to purchase the land.
b.
To determine
Provide information on the net result of the transaction if Mr. F is a dealer in land.
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* Explain.
Spiderman offered, in writing, to sell Black Widow a piece of land for $200,000.
Spiderman signed the offer and wrote that it was contingent on Black Widow
accepting within 10 days. On day five, Spiderman received and accepted a better
offer from Captain America and transferred the land to Captain America on that
day. Black Widow, who didn't know about the sale to Captain America, called
Spiderman on day seven and accepted his offer. Spiderman told Black Widow it
was too late, that he got a better offer from Captain America, and that Captain
America now owned the land. Black Widow sues Spiderman for breach of
contract. Judgment for whom? Choose the best answer.
a. Judgment for Black Widow, because Spiderman's offer was irrevocable for ten
days, and Black Widow accepted on the seventh day
b. Judgment for Spiderman, because her offer was revocable
c. Judgment for Black Widow, because Spiderman's offer was in writing
d. Judgment for Spiderman, because even if Spiderman is liable to Black…
Chapter 16 Solutions
Individual Income Taxes
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