On March 26, Sanjeev Agreed to Sell a Widget to Anita

question 17

True/False

On March 26, Sanjeev agreed to sell a widget to Anita for $50 000.She paid $10 000 immediately and promised to pay the remainder when he made delivery on August 30.Sanjeev breached the contract, however, by refusing to deliver the widget.On August 30, its market value had dropped to $47 000.Anita cannot recover expectation damages, but she can recover a maximum of $3000 in reliance damages.

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Definitions:

Income taxes

Taxes levied by governments on individuals or entities' income.

FIFO

Stands for First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.

Gross profit

The difference between revenue and the cost of goods sold (COGS), representing the profit made before deducting operating expenses.

Net income

The profit of a company after all revenues, costs, and expenses have been subtracted, indicating the actual earnings.