Nell Gives Al $50 in Return for Al's Promise to Defame

question 58

Multiple Choice

Nell gives Al $50 in return for Al's promise to defame Sara.Nell hopes to ruin Sara's chances at a promotion.Nell finds out that Al did not hold up his end of the agreement.Which of the following statements is true?

• A) Nell can get the money back from Al through litigation.
• B) Nell can get the money back and force Al to do as he promised.
• C) Legally,Nell can neither get the money back nor force Al to do as he promised.
• D) Nell can force Al to act through an appeal to the courts,but Al gets to keep the $50.

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Definitions:

Capital Loss

The result of selling an investment or asset for less than its original purchase price.

Tax Expense

The total amount of tax an individual or corporation owes to the government, displayed on financial statements.

Appreciated Property

An asset that has increased in value over time from its original purchase price.

Nonliquidating Distribution

A nonliquidating distribution refers to distributions made by a corporation to its shareholders that are not in complete termination of the shareholder’s interest in the corporation.