Pat Is a Rich Boy Whose Parents Supply Him with Every

question 72

Multiple Choice

Pat is a rich boy whose parents supply him with every conceivable necessity of life.While still a minor,Pat buys a coat on credit from a men's store for $5,000.After wearing the coat for a while,Pat decides that it bores him and that he would like to disaffirm.Which of the following is most likely to be true? Assume that Pat is still a minor.

• A)Pat can disaffirm the contract,and he must return the coat.
• B)Pat cannot disaffirm the contract,but he is liable only for the reasonable value of the coat.
• C)Pat cannot disaffirm the contract,and he is liable for the full price of the coat ($5,000).
• D)Pat can disaffirm the contract,but the store will sue him for deceit.

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Definitions:

Miscellaneous Itemized Deductions

Various deductions that could be taken when calculating an individual's taxable income, subject to specific rules and limitations.

Gambling Losses

Financial losses resulting from wagering, which can be deducted up to the amount of gambling winnings on a taxpayer’s return.

Adjusted Gross Income

Gross income minus adjustments to income. This figure is used to determine how much of your income is taxable.

Political Action Committee

A Political Action Committee (PAC) is an organization that collects political donations from members and donates those funds to campaign for or against candidates, legislation, or initiatives.