Fact Pattern 48-1B (Questions B18-B19 Apply)

question 8

Multiple Choice

Fact Pattern 48-1B (Questions B18-B19 apply)
Truck & Transfer Inc. agrees to pick up two containers for United Home Products Corporation and store their contents, to be delivered later. While Truck & Transfer un?loads one container, the other disappears from the company's loading dock.
-Refer to Fact Pattern 48-1B. These facts give rise to

• A) a presumption of negligence by Truck & Transfer.
• B) a presumption of theft by a third party.
• C) a presumption of theft by Truck & Transfer.
• D) United Home's liability for the container's loss.

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Definitions:

Operating Cash Flows

The cash generated from the normal operations of a business, excluding cash movements from investing and financing activities.

Depreciated

Refers to the decrease in value of an asset over time due to wear and tear, age, or obsolescence.

Salvaged

The recovery of value from an asset that has been damaged, discarded, or no longer useful in its original form.

Depreciation Tax Shield

A reduction in taxable income resulting from the allowance for depreciation expenses, which ultimately decreases tax liabilities.