Poolco Builds and Installs Swimming Pools

question 4

Multiple Choice

Poolco builds and installs swimming pools.The company will discount the price of a pool to its employees that choose to have one built.Given the information shown below, how much would an employee have to include as income if he took advantage of this discount?

• A)$1,750
• B)$750
• C)$500
• D)$0, because employee's cost exceeds Poolco's cost

---

Definitions:

Express Authority

The power or permission that is explicitly granted to an individual or entity by way of spoken or written words.

Subsequent Ratification

The act of officially approving or confirming a decision or agreement after it has already been made or implemented.

Principal's Identity

Information that discloses or specifies who the principal (the party for whom an agent acts) is in an agency relationship.

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts, including the ability to sue and be sued, own property, and engage in other legal activities.