Isaac Holds One Ton of Perishable Fruit in Storage for Juice

question 63

Multiple Choice

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents

• A) a breach of contract.
• B) a mitigation of damages.
• C) liquidated damages.
• D) specific performance.

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Definitions:

Land's Cost

The purchase price of land plus any additional costs spent to put it into use, such as legal fees and land grading expenses.

Prepaid Insurance

An asset account that reflects the amount paid for insurance policies in advance, before the coverage period.

Insurance Expense

This refers to the costs incurred by a business or individual as a result of purchasing insurance to protect against risks.

Unexpired Insurance

The portion of an insurance premium that has not yet expired or been used and is considered a prepaid expense.