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Oksanka [162]
2 years ago
6

Tommy McCartney is a sixteen-year-old high school student. He has worked forty hours per week at the local convenience store ove

r the last year, and has diligently saved $6,000 for the purchase of his first car. While visiting a local car dealership, Tommy finds the “car of his dreams,” a used yellow Camaro. Tommy walks into the dealership, announces to the dealership owner that he is “ready to buy,” negotiates $6,000 as the purchase price, and leaves the dealership a proud car owner. Over the course of the next six months, Tommy drives the Camaro eight thousand miles, wears the tires thin, dents the left front fender, and regrets his purchase. He realizes that in two short years college will beckon, and he knows that his parents cannot afford to pay for his higher education. In short, he wants his money back. On a Saturday morning, Tommy returns to the car dealership, walks into the sales office, and hands the keys to the seller, asking for the return of his $6,000. The dealer chuckles, and then his look turns stern, saying “Son, I don’t owe you anything. You’ve just learned a lesson in the ‘School of Hard Knocks.’ The car is still yours, and the money is still mine!” Who will prevail? Is it legal and/or ethical to allow Tommy to escape his contractual obligations?
Business
1 answer:
Aleks [24]2 years ago
5 0

Explanation:

First of all, the dealer should not have sold the car to the sixteen year old boy without the presence of his parents or any guardian. It is illegal to have a contract with a child who is not legally allowed to drive the car before the age of eighteen.

Now secondly if the dealer has somehow sold the car to the boy, the boy cannot come back after few months and ask for returning his money because he purchased the car, the condition of the condition of the car got worse during the whole time when car was with him, and also there is no legal clause in the agreement which allows him to demand his money back after using the car for this long time. So demanding his money back from the dealer is totally unethical as well as illegal. The dealer is true that the car is still the property of the boy and the money is still the dealer's money.

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Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 perce
Dahasolnce [82]

Answer:

A. Debit: Bad Debt Expense 2,500

Credit: Allowance for Doubtful Accounts 2,500

250,000 x .01 = 2,500

B. Debit: Bad Debt Expense 2,750

Credit: Allowance for Doubtful Accounts 2,750

3,000 - 250 = 2,750

8 0
2 years ago
Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (ye
Ierofanga [76]

Answer:

$7,986

Explanation:

To calculate the equivalent annual cost for 5 year period at an interest rate of 10% per year we need to go through some minor calculations first.

DATA

Cost in first year (A) = $10,000

Decrease in cost each year after the first year (G) = $560

Interest rate = 10%

Time period = 5 years

Solution

EAC = A - G (A/G, i, n)

EAC = $9,000 - $560(A/G, 10%, 5)

EAC = $9,000 - ($560 * 1.8101)

EAC = $9,000 - $1,013.656

EAC = $7,986

4 0
2 years ago
A 12-year bond of a firm in severe financial distress has a coupon rate of 12% and sells for $920. The firm is currently renegot
BARSIC [14]

Answer:

13.37% ; 7.01%

Explanation:

The computation of the stated and expected yields to maturity of the bonds is shown in the attachment below:

For stated yield, we use the RATE formula i.e

Given that,  

Present value = $920

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 12% = $120

NPER = 12 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the stated yield is 13.37%

Now for expected yield, we also use the RATE formula i.e

Given that,  

Present value = $920

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 12% ÷ 2 = $60

NPER = 12 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the expected yield is 7.01%

5 0
2 years ago
24. An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to
FrozenT [24]

Answer:

$200

Explanation:

GDP refers to the total value of all goods and services produced in a country in a period. Economists consider all products regardless of who manufactured them. Only finished consumer goods and services are counted to avoid double counting.

In the scenario, only the fruits and vegetables will add to the US GDP. They are finished consumer goods produced within the borders of the US. If they were capital goods, they would not be included in GDP calculations. The $100 spent on MP3 will not count because the item was not produced in the US. It is an import. Its value will be adjusted against exports when calculating GDP.

4 0
2 years ago
One bag of coffee beans is sold for $7 to a coffee shop that uses it to brew coffee which it sells to customers for a total of $
Alex787 [66]
The answer is"$24".

This is how we calculate this;
<span>One bag of coffee beans is sold for $7 to a coffee shop 
</span><span>which it sells to customers for a total of  = $15
</span><span>second bag of coffee beans is sold directly to joan for =  $9

</span><span>contribution to gdp from the purchases of coffee beans and coffee = 
$15 + $9 = $24


</span>Gross Domestic Product (GDP) is the broadest quantitative measure of a country's aggregate financial action. More particularly, GDP represents the money related estimation everything being equal and administrations created inside a country's geographic outskirts over a predetermined time frame.
6 0
2 years ago
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