Which of the Following Factors Is Most Important in Deciding

question 66

Multiple Choice

Which of the following factors is most important in deciding who bears the risk of loss between merchants when goods are destroyed during shipment?

• A)The agreement of the parties
• B)Whether the goods were perishable
• C)Who has title at the time of the loss.
• D)The terms of applicable insurance policies

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Definitions:

Book Depreciation

The method of allocating the cost of a physical or tangible asset over its useful life for accounting and tax purposes.

Earnings and Profits

A measure used in corporate tax to assess the ability of a corporation to make distributions to its shareholders that are not considered a return of capital.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss on a sale or disposition.

Capital Gain

The profit from the sale of property or an investment, calculated as the difference between the selling price and the purchase price.