Carlos, a Contractor, and Lyle, a Landowner, Have a Contract

question 50

Multiple Choice

Carlos, a contractor, and Lyle, a landowner, have a contract whereby Carlos is to perform routine construction services according to the blueprints that Lyle has provided.Carlos assigns the contract to David, a developer.As a result of this assignment:

• A)Lyle can bring suit based upon detrimental reliance.
• B)Carlos has no more rights or responsibilities with regard to the contract.
• C)Carlos no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.
• D)Carlos has all of his rights under the contract, but he has no responsibility for the performance of the duties.

---

Definitions:

Dollar-Value LIFO

An inflation-adjusted LIFO method that groups inventory into pools based on dollar value rather than physical units, protecting against inflationary effects.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a specific period.

Inventory Cost Flow Assumptions

Assumptions made about how inventory costs move through a company's financial statements, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost methods.

Descriptive Statements

Statements that provide detailed information or explanation about a specific topic, often used in documentation or reporting.