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babunello [35]
2 years ago
12

A debtor owed a creditor $1,200 on a promissory note that was due on August 1. After the debtor told the creditor that he might

not be able to pay the note on its due date, the creditor agreed to extinguish the debt if the debtor, who was the manager of a discount electronics store, bought a new entertainment system that sold for $1,200 and had it delivered to the creditor's home by August 15. Because the debtor would have to pay only $600 for the system due to his manager's discount, he agreed and the parties signed a written contract on July 26. Is the new agreement between the debtor and the creditor legally enforceable
Business
1 answer:
Ilya [14]2 years ago
6 0

Answer:

The correct option is C. Yes, because the debtor incurred a different obligation than he already had.

Explanation:

Note: This question is not complete as the options are omitted. The question is therefore completed before answering the question by providing the options as follows:

A. No, because the debtor incurred no additional detriment that would serve as consideration for the new agreement.

B. Yes, because it would have cost the creditor $1,200 to purchase the entertainment system himself.

C. Yes, because the debtor incurred a different obligation than he already had.

D. Yes, because the new agreement between the debtor and the creditor is enforceable with or without

Explanation of the answer is now provided as follows.

It is possible to enforce the two parties' new agreement as an accord.

An accord can be described as an agreement in which one party to an existing contract agrees to accept some other, different performance from the other party in lieu of the performance that the other party is obligated to provide. In principle, an agreement must be backed by payment, but the consideration can be less than the amount agreed upon in the preceding contract if it is of a different character or the claim is to be paid to a third party. The responsibility of the debtor to supply the creditor with a new entertainment system was enough fresh consideration to constitute a legal agreement in this case.

When a party's responsibility is modified in some way, as the debtor's duty was in this case, the preceding legal duty rule does not apply. It makes no difference whether the creditor's benefit in the accord arrangement is equal to the original debt's worth; courts will find appropriate consideration if the consideration is fresh or different in any way. The difference in the debtor's obligation, that is, payment is in the form of an entertainment system rather than cash) is enough to sustain the accord arrangement, regardless of how much the entertainment system would have cost the creditor.

The Uniform Commercial Code (UCC) does not apply because the original agreement was not for the sale of goods. The underlying commitment in this case was to pay a debt secured by a promissory note.

Therefore, the correct option is C. Yes, because the debtor incurred a different obligation than he already had.

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The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
Lera25 [3.4K]

<u>Solution and Explanation:</u>

The following journal entries will be passed in the book sof fasteners Inc., Co., which is a supplier of buttons and zippers for clothing

Date        Accounts Titles and Explanation  Post Ref    Debit  Credit

1 Nov-21  Notes receivable                                      $ 72,000  

      Accounts receivable-McKenna Outer Wear Co.        $ 72,000

2  Dec-31  Interest receivable (72000 * 9 \% * 40 / 360)    $720  

 Interest revenue                                                     $ 320

3  Jan-20  Cash                                           $ 73080  

 Interest revenue (72000 * 9 \% * 20 / 360)         $360

 Interest receivable                                          $720

 Notes receivable                                               $72,000

Note: the figures have been calculated and rounded off in the nearest dollar amount.

4 0
3 years ago
Which step in the product development process involves announcing a new
Scorpion4ik [409]

Answer:

D

Explanation:

announcing the product takes place in the commercialization and launch of the product

5 0
3 years ago
ChocolateCookie Inc is a private firm. You collected information about its competitors and calculated the weighted average of th
kvv77 [185]

Answer:

1.25

Explanation:

The Capital Asset Pricing model will be used

ße = ßa × [Ve + Vd(1 – T)] / Ve

Here

ße = 1.08

Ve = Value of equity $50 million

Vd = Value of debt $10 million

T is tax rate which is 21%.

By putting the values, we have:

ße = 1.08 × [50 + 10(1 – 21%)] / 50

ße = 1.25

The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.

8 0
2 years ago
Jmes Graham Manufacturing is a small manufacturer that uses machine-hours as its
IgorLugansk [536]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Company - Job 62 - Job 63

Direct materials: $60,000 - $4,500 - $7,100

Direct labor: $25,000 - $2,500 - $4,200

overhead costs $72,000

Machine hours: 90,000 - 1,350 - 3,100

During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month.

A) To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 72,000/90,000

Estimated manufacturing overhead rate=  0.8 per machine-hour

B) Total manufacturing cost= direct material + direct labor + allocated overhead

Job 62:

Total manufacturing cost= 4,500 + 2,500 + 0.8*1,350

Total manufacturing cost= $8,080

Job 63:

Total manufacturing cost= 7,100 + 4,200 + 0.8*3,100

Total manufacturing cost= $13,780

C) Unitary cost= total cost/ number of units

Job 62:

Unitary cost= 8,080/1,000= $8.08

Job 63:

Unitary cost= 13,780/2,000= $6.89

D) First, we need to apply overhead for the company as a whole:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.8*95,000

Allocated MOH= $76,000

Now, we can calculate the over/under applied overhead:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 71,000 - 76,000

Overapplied overhead= $5,000

E) Job 62= 14,000

Job 63= 18,000

Gross profit= sales - cost of goods sold

Job 62:

Gross profit= 14,000 - 8,080= $5,920

Job 63:

Gross profit= 18,000 - 13,780= $4,220

7 0
3 years ago
Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not
Ray Of Light [21]

Answer: D) Tax Court

Explanation:

Tax court of United States is court that is made for hearing tax-related issue and problem and then judgment is made on the disputes.According to the question, Rowanda should appeal to U.S. tax court for her tax disputer with IRS so that appropriate decision can be made in legal way.

Other options are incorrect because the United state's court of Appeals, federal claim and district are not the place where tax related disputes are legally handled and heard.Thus, the correct option is option(D).

8 0
3 years ago
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