Seller and Buyer Negotiate for the Sale of 100 Acres

question 107

Multiple Choice

Seller and Buyer negotiate for the sale of 100 acres of land.They orally agree on a price of $100,000,with payment to be made within 10 days and the deed delivered within another 30 days.Buyer sends Seller a letter in which all these terms are included,along with a check for $100,000 that the seller deposits.The seller fails to deliver a deed and the buyer seeks to enforce the contract.Here,this contract is:

• A) enforceable, because Buyer had partly performed the contract by making payment.
• B) unenforceable, because there is no writing signed by Seller.
• C) enforceable, because Buyer sent a memorandum sufficient against himself, which binds Seller unless Seller objects, which he did not.
• D) unenforceable, because the failure to deliver the deed is fraud.
• E) unenforceable because land is not within the statute of frauds unless a house is built on it.

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Definitions:

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes allowing for faster recovery of assets' costs to stimulate investment.

Straight-Line Depreciation

An approach to spreading the expense of a tangible asset across its lifespan in uniform yearly sums.

Income Taxes

Taxes levied by governments on the income generated by businesses or individuals within their jurisdiction.

Changing Depreciation Methods

The process of altering the accounting method used to allocate the cost of a tangible asset over its useful life for financial reporting purposes.