Purchasing a Parcel of Land for $100,000 by Paying $10,000

question 25

Multiple Choice

Purchasing a parcel of land for $100,000 by paying $10,000 in cash and signing a promissory note for the remainder would:

• A)decrease owner's equity by $90,000.
• B)increase owner's equity by $10,000.
• C)decrease liabilities by $90,000.
• D)increase total assets by $90,000.

Understand the statutory requirements under the statute of frauds for different types of contracts.

Identify the concepts of intended, incidental, and donee beneficiaries within contracts.

Recognize valid contract assignments and the role of assignees.

Distinguish between oral and written contracts and understand their enforceability.

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Definitions:

Population Mean

The average value of all elements in a population, where the population represents the entire set of interest.

Sample Mean

The average of all the data points in a sample, used as an estimate of the population mean.

Population Standard Deviation

A measure of the dispersion or variability of a set of data points in a population, indicating how much each member differs from the population mean.

Confidence Level

The probability or percentage that specifies how confident one is in a statistical estimate or interval to contain the true parameter of the population.