At an Auction for the First Time,Dulcinea Bids on a One-Hundred-Year-Old

question 26

Multiple Choice

At an auction for the first time,Dulcinea bids on a one-hundred-year-old Edison-brand phonograph,believing that it is worth more than the price asked.When the item proves to be less valuable,Dulcinea is

• A)liable on the bid.
• B)not liable on the bid because Dulcinea overestimated the value of the auctioned item.
• C)not liable on the bid because the auctioneer overstated the value of the auctioned item.
• D)not liable on the bid because this was Dulcinea's first auction.

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Definitions:

Appraised Value

The estimated monetary value of an asset determined by a professional appraiser based on its features and market conditions.

Land Account

An account on the balance sheet representing the cost of land owned by a company that is used in its operations.

Appreciated

Increased in value or worth over time, often used in the context of assets like property or investments.

Capitalized Cost

The total cost of a purchased asset, including acquisition price and all costs to bring the asset to a functioning state.