Mike Begins an Excavation on His Land to Construct a New

question 10

Multiple Choice

Mike begins an excavation on his land to construct a new building.The excavation causes a subsidence in neighboring lands and buildings owned by Molly, although Molly's land in its natural state would not have subsided.Assuming Mike was not negligent and there is no applicable state statute:

• A)Molly may recover damages for her land and buildings.
• B)Molly may recover damages for her land alone.
• C)Molly may recover damages for her buildings alone.
• D)Molly may not recover damages.

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Definitions:

Percent of Sales Method

A financial planning tool used to forecast future revenues, expenses, or balance sheet figures as a percentage of sales.

Uncollectible Accounts Receivable

Accounts receivable that are considered to be uncollectible due to the inability of the customers to pay.

Journal Entries

Recorded transactions in the accounting system, documenting financial changes in accounts.

Percent of Sales

Percent of sales is a financial analysis tool that helps in estimating how certain accounts, like revenue and expenses, will vary in proportion to changes in sales.