Mary Cleaned Her Dorm Room in the Spring and Left

question 47

Multiple Choice

Mary cleaned her dorm room in the spring and left a pile of books in Sara's room. Mary told everybody that the books were a gift to Sara. Does Sara have to dispose of them?

• A) Yes, because there was a present intent and delivery.
• B) Yes, because they are constructively in Sara's possession.
• C) No, because Sara did not accept the books.
• D) No, because there was no agreement between the two parties.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Noncontrolling Interest

A stake in a company that is less than 50% of the company's voting shares, indicating a lack of control over the company's operations.

Separate Return Method

A tax filing approach where subsidiaries file their tax returns separately from the parent company, often used in jurisdictions allowing or requiring such filings.

Tax-Free Business Combination

A merger or acquisition in which no tax is payable by either the acquiring or target company.