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Colt1911 [192]
3 years ago
14

State the elements of proof that are necessary to make out a case of attractive nuisance as per the Restatement of Torts, Sectio

n 339.
Business
1 answer:
Ivan3 years ago
7 0

Answer:

Attractive nuisance occurs when a child trespasses a property because something in the land attracted him, e.g. an old wagon or car, an gets hurt by playing with it. The requirements for attractive nuisance to exist are:  

  1. The child is hurt by playing with the object or structure that attracted him/her (the object must be man made).  
  2. The person in charge of the place should have reasonably known that the object or structure could attract children.  
  3. The person in charge of the place should have known that playing with the object or structure could pose a risk for children.  
  4. The child needs to be young enough to not understand the risk of playing with the object or structure, e.g. someone 17 years old is not considered a young child though he/she is a minor.  
  5. The risk associated with the object or structure is far greater than any decorative use given to the object or structure.
  6. The person in charge of the place failed to do enough to prevent the danger or protect any children that would eventually play with the object or structure, e.g. put a fence around it.
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If opportunity cost is 5%: PV = \frac{12,000 }{(1+0.05)^{3} } =10,366.05

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If opportunity cost is 11.5%: PV = \frac{12,000 }{(1+0.115)^{3} } =8,656.79

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On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash $ 66,000 Maria Lopez, Drawing $
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Answer:

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

2. Dec 31, 2019

Dr Income summary 60,000

Cr Salaries expense 34,000

Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

3. Dec 31, 2019

Dr Income summary 47,500

Cr Retained earnings 47,500

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Dr Maria lopez, capital 52,000

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Explanation:

Preparation of the closing entries for the above transactions

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

(To close revenue account)

2. Dec 31, 2019

Dr Income summary 60,000

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Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

(To close expenses account)

3. Dec 31, 2019

Dr Income summary 47,500

($107,500-60,000)

Cr Retained earnings 47,500

(To close income summary account)

4. Dec 31, 2019

Dr Maria lopez, capital 52,000

Cr Maria lopez, drawing 52,000

(To close drawings account)

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