In a Case Filed in a Superior Court, Alpha Inc

question 8

Essay

In a case filed in a superior court, Alpha Inc sued Beta Ltd for breach of contract.Alpha claimed damages of $250 000.Although Beta denied liability, it formally offered to settle the claim for $100 000.Alpha rejected that offer, but in response, it formally offered to settle its claim for $200 000.Beta rejected that offer.The case has now gone to trial.Explain what order the judge will likely make with respect to costs if (a) Beta is liable for $150 000, or (b) Beta is liable for $50 000?

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Definitions:

Tax Losses

Financial losses that can be deducted from taxable income, ultimately reducing the amount of tax owed to the government.

Deferred Tax Liability

A tax obligation that arises from temporary differences between financial and tax reporting and is expected to be settled in future fiscal periods.

Consolidated SFP

Stands for Consolidated Statement of Financial Position, which is a financial report that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries.

Tax Value

The value assigned to an asset, liability, or transaction for the purpose of calculating taxes owed, which may differ from book or market values.