Bob Is Moving to Another Job Across the Country and Decides

question 59

Multiple Choice

Bob is moving to another job across the country and decides to sell a majority of his household goods. In various separate contracts he agrees to sell his 50" HD TV which is two weeks old, his coffee maker bought at Wal-Mart, his antique, custom-built bicycle and his hand-signed and numbered Salvador Dali lithograph. He is moving on August 8^th and the buyers, who have written contracts, are to pay and pick up their purchases on August 3^rd. On August 3^rd they all arrive with money in hand but Bob refuses to go through with the contracts claiming sentimental attachment that he hadn't anticipated. Which of the following is true?

• A) All four purchasers may successfully sue based on specific performance.
• B) Sentimental attachment is a valid defense to all of these contracts, so Bob may breach.
• C) Specific performance will only apply to the coffee maker and television, but not to the bike and the lithograph.
• D) Specific performance will only apply to the bike and the lithograph, but not to the coffee maker and the television.
• E) Specific performance will only apply to the television, the bike and the lithograph, but not to the coffee maker.

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Definitions:

Physical Inventory

The process of counting all the physical goods and materials a company has in its possession at a certain point in time, often done annually.

Cost of Goods Purchased

The total cost incurred by a company to acquire goods or raw materials for production, including any additional expenses directly related to the purchase.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, used for calculating cost of goods sold.

Average-Cost Method

An inventory costing method where the cost of goods sold and ending inventory are calculated using the average cost of all units available for sale during the period.