Answer:
Explanation:
Issue: Will the court rule in support of Daniel’s argument that Nintendo breached the warranty based on reasonable expectation on the performance of an expensive system and statements made while selling the gaming system?
Rule: There is a creation of express warranty when a seller makes a description of the statement quality, condition or performance of goods sold. This warranty is created by the statement of facts and if the seller uses words to designate the value of the supposed goods, it will only be considered as an opinion that does not create any express warranty.
The customer’s reasonable expectation of the existence of the gaming system based on the price leads to implied warranty. The goods sold should be logically fit for the general purpose for which it is sold. It should be of proper quality to satisfy the implied warranty of merchantability and the goods should fit the particular purpose for which the buyer will use the goods to satisfy the implied warranty of fitness for a particular purpose.
Analysis: Here, the argument of Daniel that Nintendo’s description of the gaming system as “most reliable”, and “durable” asserted that the quality and performance of the gaming system will not stay because these words create general statements that are made as part of sale or seller’s opinion about the goods. These words would be considered as puffery and do not create any express warranty. The higher price of the gaming system would create an implied warranty about the performance of the system, but the switch failed only after the warranty period. When the seller has expressly stated the warranty period as one year, any defects that occur after the warranty period will not breach the implied warranty.
Moreover, the gaming system was reasonably fit for Daniel’s business purpose and worked well during the warranty period. Hence Daniel’s arguments will not stay in front of the court.
Conclusion: The court will not rule in favor of Daniel and Daniel will not be able to recover against Nintendo because no breach of warranty had occurred.
Answer:
c. The balance of mortgage payable will decrease each period the loan is outstanding.
Explanation:
Since in the question it is mentioned that the coporation has to pay the amount of $80,000 to bank for 10 years in order to reply the loan so according to the given options the option c should be selected as the part of the annual payment would be considered to the loan principal amount this increase for each and every period but at the same time the interest expense amount would be reduced in each and every period at the time when loan become outstanding
Answer:
all these are included in the gross income
Explanation:
given data
damages = $36,250
emotional distress = $10,100
punitive damages = $58,200
to find out
What amount must Paul include in his gross income
solution
we know according to the tax laws that specify only payment on account of (1) physical injury and (2) physical sickness is non taxable
so here taxpayers receive
they are not associate with the physical injury so all these mentioned are not covered in physical damages
so we can say that all these are included in the gross income
Answer:
d. Revenue recognition
Explanation:
The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.
Since the given scenario reflects the violation of the revenue recognition principle.
Answer:
$97,000
Explanation:
The computation of the total cash receipts for the month of April is shown below:
= Cash sales in April + (Credit sales in February × following second month percentage) + (Credit sales in March x following month percentage)
= $40,000 + ($50,000 x 30%) + ($60,000 x 70%)
= $40,000 + $15,000 + $42,000
= $97,000
We simply added the cash sales for one month and the credit sales for two months so that the total cash receipts could come
