Sam and Tiffany Enter into an Implied Contract

question 8

Multiple Choice

Sam and Tiffany enter into an implied contract.This is a contract in which the parties' conduct

• A)defines the contract's terms.
• B)finds the contract's facts.
• C)terminates any unintended consequences.
• D)undercuts any terms based on the facts.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be used by an entity before it is replaced or becomes obsolete.

Depreciated

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

Modified Accelerated Cost Recovery System

A method of depreciation in the U.S. tax code that allows for faster asset depreciation in the early years of the asset's life.

U.S. Federal Income Tax

The financial charge imposed annually by the Internal Revenue Service on the income of individuals, corporations, trusts, and various legal entities.