The Rameys Are Selling Their Home

question 13

Essay

The Rameys are selling their home.They did not set forth in the sales agreement whether the washer and dryer,the draperies,and a cherry corner cabinet that was in the dining room were to be included in the sale or whether they were planning to take these items with them.The buyers are claiming these items are fixtures and should stay with the house.The Rameys are claiming they are movable goods and they should not be part of the real estate that was sold.Define "fixtures," identify the tests used to determine whether an item is a fixture,and explain whether you think each of the contested items is a fixture and why or why not.

---

Definitions:

Cash Dividends Payable

Cash dividends payable are dividends that a company has declared to distribute to its shareholders but has not yet paid out.

Payment Of Dividends

The distribution of some of a company's earnings to its shareholders as determined by the company's board of directors.

Beginning Of The Year

Refers to the start of a fiscal or calendar year, marking the point in time when businesses commonly review and adjust budgets, plans, and strategies.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.