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Aleksandr-060686 [28]
3 years ago
5

Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every

pound that he loses within the next eleven months. Ewing agrees, diets and exercises, loses 154 pounds, and asks Dean for $1,540. Dean refuses to pay, saying that he does not remember the promise, but that even if he did make it, there was no consideration, and Ewing’s improved health is a sufficient benefit for his effort and sacrifice. Ewing files a suit against Dean. In whose favor is the court likely to rule, and why?
Business
1 answer:
Lunna [17]3 years ago
8 0

Answer: In Favour of Ewing.

Explanation:

When Dean made that promise, he got into a contract with Ewing.

Now for a contract to be enforceable, 4 components must be satisfied. These components are, Agreement, Capacity (mental), Consideration and Legality.

From the above text we can tell that this is therefore a valid contract because both of them agreed to the proposal and were both of sound mind when they did. There was a Consideration ( the benefit in the contract) of $10 per pound and this contract is legally sound so this is a valid contract.

Ewing has fulfilled his side of the bargain and is entitled to his reward or payment.

Dean's claim that Ewing’s improved health is a sufficient benefit for his effort and sacrifice which indeed is a benefit, should not be considered sufficient because it was not agreed upon as a term in the contract.

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As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o
fgiga [73]

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

7 0
3 years ago
Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
lisov135 [29]

Answer:

In six months, Linda will pay : $480

Final payments :$819

Explanation:

The monthly payments are $80 for six months.

For six months, Linda will have paid $80 times six months

=$80 x 6

=$480

The amount for her final payments will be the total of the two items  minus the installment payments

=$1,299 - $480

=$819

7 0
3 years ago
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following informa
horsena [70]

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

5 0
3 years ago
Hunter Manufacturing Inc.'s December 31, 2009, balance sheet showed total common equity of $2,050,000 and 100,000 shares of stoc
Nadya [2.5K]

Answer:

$22.00

Explanation:

Book value per share = Total shareholder equity/ number of share outstanding

Total equity as of 31 Dec 2010 = total common equity at 31 Dec 2009 + net income of 2010 – paid out dividends in 2010 = $2,050,000 + $250,000 - $100,000 = $2,200,000

The book value per share at 12/31/10 = Total equity as of 31 Dec 2010/ number of share outstanding = $2,200,000/ 100,000 = $2200

5 0
3 years ago
In 2014, David Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $2
poizon [28]

Answer:

d. $720,000 asset.

Explanation:

At 2014 David Company reported a loss for 2,400,000 which, for taxes purposes wasn't recognized.

Thus, there is a temporary diffrence in favor of the company,

as is paying more income tax today (the 2,400,000 loss is not recognzied thus, more income taxes are being paid)

and then, will pay less than the accounting net income (latter will pay taxes including this loss, thus less income tax)

This is a deffered income tax asset for: 2,400,000 x 30% = 720,000

tax deffered(assets) 720,000 debit

income tax expense  60,000 debit

      cash                                      780,000 credit

8 0
3 years ago
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