Which of the Following Is the Most Likely Result in the Dispute

question 42

Multiple Choice

Which of the following is the most likely result in the dispute between Marcy and Lucy regarding which used truck was sold assuming that both Marcy and Lucy were innocently mistaken and did not intend to defraud the other?

• A) The contract will be rescinded.
• B) Marcy will be allowed to pick the truck she wants to buy because she is the buyer, and she may also recover damages.
• C) Lucy will be allowed to pick the truck she wants to sell because she is the seller.
• D) Marcy will be allowed to pick the truck she wants to buy because she also had a contract on the ancillary farm.
• E) Marcy will be allowed to pick the truck she wants to buy because she is the buyer, but she may not recover damages.

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Definitions:

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to a reduction in its recorded value on financial statements.

Investment in Grub

Specific reference to an investment made in a company known as "Grub", treated according to the investor's accounting method for such investments.

Goodwill

An intangible asset representing the excess of the purchase price over the fair market value of an acquired company's net assets, attributed to factors like reputation.

IASB Requirements

The mandatory guidelines and standards set by the International Accounting Standards Board for financial reporting and accounting practices worldwide.