In Which of the Following Scenarios Would the Contract Likely

question 58

Multiple Choice

In which of the following scenarios would the contract likely NOT be enforced against the minor involved?

• A)Janice, a minor enrolls in a cosmetology school and signs a tuition fee payment agreement
• B)Samantha, a minor buys grocery items from the local supermarket
• C)Jasper a minor buys clothing from the Gap for college
• D)Toby a minor, buys a sports car from Thunder Motors Limited.
• E)Kyle, a minor and renowned hobbyist, signs up for sky-diving lessons and promises to pay the relevant fees in installments

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Definitions:

Straight-Line Depreciation

A method of accounting in which an asset's cost is evenly distributed over its useful life to represent its consumption.

Depreciable Cost

The total cost of an asset that is subject to depreciation over its useful life, excluding any salvage value.

Depreciation Expense

The amount of depreciation charged in the income statement, representing the cost allocated for the use of fixed assets during an accounting period.

Estimated Useful Life

The expected period over which a fixed asset is projected to be usable by a business, affecting its depreciation calculation.