A manufacturer or seller is relieved of product liability if the plaintiff has been injured by an abnormal misuse of a product. A company or person is responsible for any damage that occurs to someone or something when they are using a product exactly how it is intended to be used. If they don't however, they aren't responsible because it is not their fault if a consumer doesn't follow appropriate directions for use.
Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
Answer:
Maria should use Schedule C to report her business income.
Explanation:
Anyone who is running a business (as a single owner not in partnership) has to fill the Schedule C form while filling annual tax returns.
Schedule C:
It is profit or loss form of a business and tells the income as well as deductible expenses of a business for a tax year.
Note:
If someone is operating more than one business then he or she has to file a separate Schedule C for each of business.
Answer: $100,000
Explanation:
The Civil Rights Act of 1991 prohibits every form discrimination in organizations that are based on religion, race, gender, color, or ethnic considerations.
Since Hannigan Lumber employs 155 workers, if one of the firm's former employees used the Civil Rights Act of 1991 to file and win a discrimination lawsuit against Hannigan Lumber, the maximum amount of punitive damages that the former employee could receive will be $100,000.
This is because according to the law, an employer that has employees of about 101-200 workers will pay demages of $100,000 if a discrimination lawsuit is won.