Which of the Following Contracts Are Not Illegal Under Common

question 49

Multiple Choice

Which of the following contracts are not illegal under common law?

• A)A contract to defame a celebrity.
• B)A contract to bribe a politician.
• C)A contract to avoid the payment of tax by restructuring income payments.
• D)A contract not to appear as a witness in a criminal trial.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation amount.

Capitalize Development Costs

The accounting practice of adding the costs associated with developing a new product or service to the balance sheet as an asset, rather than expensing them.

Research Costs

Expenses related to the investigation and discovery of new knowledge that could be useful for the development of new products or services.

Units-Of-Production Method

A depreciation method that allocates an asset’s cost based on its usage, productivity, or units produced, rather than the passage of time.