Dylan Engineering Corporation has a contract withMarley Stores to provide customized software forMarley's inventory control system. Cliff Outlets,Inc., Marley's competitor, pays $2,500 to Costello, aDylan subcontractor, who is writing code for theMarley software, to delay delivery of the code forone week. As a result, Dylan's delivery of thesoftware to Marley is delayed, and Marley sustains$100,000 in lost profits.On what ground could Marley recover damagesfrom Cliff? What would Marley have to prove towin their case? Fully discuss, including explainingwhat must be proven to establish any legal theoriesand how such issues are most likely to be resolvedin court.

An agreement which is legally enforceable under which one party agree to provide a particular goods…

On what ground could Marley recover damages from Cliff? What would Marley have to prove to win their case? Fully discuss, including explaining what must be proven to establish any legal theories and how such issues are most likely to be resolved in court.

On what ground could Marley recover damages from Cliff? What would Marley have to prove to win their case? Fully discuss, including explaining what must be proven to establish any legal theories and how such issues are most likely to be resolved in court.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 45P: The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct...

See similar textbooks

Similar questions

Lacey Inc. manufactures hair products that it sells to multiple distributors. Lacey developed a new line of shampoo that it sold to distributors in the month of July for $90,000 (cost of $45,000). If the distributors fail to sell the new product (shampoo), the product can be returned to Lacey Inc. for a full refund. Because this is a new product line, Lacey is unable to estimate the amount of returns. No actual returns took place in July. a. Determine revenue to be recognized during July. b. Determine the balance in refund liability on July 31. $ 90,000 x 0 x
Davenport Corp. sells William's Furnishings Co., $60,000 worth of couches, chairs, and lounges for William's Furnishings Co. ("WF") to sell to its customers. When Davenport Corp's trucks attempt to deliver the merchandise, they are advised by representatives from WF that they can no longer afford to pay Davenport Corp. for the order. At the time of delivery, the market value of the merchandise is $40,000. What, if anything, can Davenport sue WF to recover? $20,000 O S60,000 O $40,000
PIHLS they did not fit. the customer's needs (invoice amount: $1,300). Allied restores the units, which cost $900, to its inventory. May 8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $500 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
XYZ, Inc. sold 100 widgets to ABC, Inc. on 1/1/18 for $50 per widget on account. The sales agreement allows ABC to return widgets that they are unsatisfied with or exceed their needs within 30 days of the sale. The widgets cost XYZ $30 to produce. XYZ doesn’t anticipate any material cost of restocking the inventory nor any inability to resell them at $50 per unit. ABC expects that 10 widgets will be returned within the return period. Discuss the criteria for recognizing sales returns and allowances covered in the text and determine whether this arrangement meets the requirements Record the journal entry for the sale on 1/1/18. ABC returned 5 widgets on 1/18/18. Record the journal entry for this event. XYZ prepared a balance sheet on 1/31/18. Record any journal entries that they would need make prior to preparing their financial statements. Show how their accounts receivable and related accounts would be reported on that balance sheet. Show how the sales and gross profit section of…
Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular band of computers on hand for over a year. These computers have not sold and probably will not sell unless they are discounted 60 to 70%. The accountant is carrying them on the books at cost and intends to recognize the loss when they are sold. This way, she can avoid a significant write-down in inventory on the current year's financial statements. Is the accountant correct in her treatment of the inventory? Why or why not? can you help me explain this?
Ethics Case Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and probably will not sell unless they are discounted 60 to 70%. The accountant is carrying them on the books at cost and intends to recognize the loss when they are sold. This way, she can avoid a significant write-down in inventory on the current year’s financial statements. 1. Is the accountant correct in her treatment of the inventory? Why or why not? 2. If the computers cost $1,000 each and their market value is 40% of their cost, journalize the entry necessary for the write-down. 3. In groups of three or four, make a list of reasons why inventories of electronic equipment might have to be written down.
Thornton Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Incorporated. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Thornton to carry the excess. Thornton contracts with independent pilots to fly its planes on a per-trip basis. Thornton recently purchased an airplane that cost the company $5,632,000. The plane has an estimated useful life of 25,600,000 miles and a zero salvage value. During the first week in January, Thornton flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Thornton paid $310 for the pilot and $260 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $260 for the pilot and $130 for fuel. The…
The Dotson Company, owner of Bleacher Mall, charges Rich Clothing Store a rental fee of $600 per month plus 5% of yearly profits over $500,000. Matt Rich, the owner of the store, directs his accountant, Ron Hamilton, to increase the estimate of bad debt expense and warranty costs in order to keep profits at $475,000. Instructions Answer the following questions. a. Should Hamilton follow his boss’s directive?. b. Who is harmed if the estimates are increased? c. Is Matt Rich’s directive ethical?
A digital watch bought from TPPL had a short circuit while the customer was doing work under the sun. This resulted in minor burns and injury to the customer's wrist. The customer sued the company for $10,000 as compensation. As at 31 December 20X1, TPPL's lawyer believed that it would be more than likely that the company would lose the court case against the customer. As the short circuit was very likely due to a manufacturing defect, TPPL also made a corresponding claim against the manufacturer of the digital watch for $8,000. The company's lawyer believed that there would be a 70% chance that the counter claim against the manufacturer was likely to succeed. Explain and discuss how TPPL should treat these two legal claims in its financial statements for the year ended 31 December 20X1 under the applicable SFRSs.
Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Stuart to carry the excess. Stuart contracts with independent pilots to fly its planes on a per-trip basis. Stuart recently purchased an airplane that cost the company $6,192,000. The plane has an estimated useful life of 25,800,000 miles and a zero salvage value. During the first week in January, Stuart flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Stuart paid $350 for the pilot and $300 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $300 for the pilot and $150 for fuel. The round trip between…
[The following information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Dundee Total Total purchases (cartons) 91,000 39,000 130,000 Average purchase price (per carton) $ 22.00 $ 24 $ 22.60 Number of deliveries 60 40 100 Percentage of late deliveries 25 % 10 % 19 % The Accounting Department recorded $533,000 as the cost of late deliveries to customers. Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the…
Franklin Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Franklin to carry the excess. Franklin contracts with independent pilots to fly its planes on a per-trip basis. Franklin recently purchased an airplane that cost the company $6,318,000. The plane has an estimated useful life of 24,300,000 miles and a zero salvage value. During the first week in January, Franklin flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Franklin paid $340 for the pilot and $290 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $290 for the pilot and $145 for fuel. The round trip…