On May 1,Dix and Wilk Entered into an Oral Agreement

question 1

Multiple Choice

On May 1,Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450.Dix paid Wilk $100 as a deposit.The following day,Wilk received another offer to purchase the land for $650,the fair market value.Wilk immediately notified Dix that Wilk would not sell the land for $450.If Dix sues Wilk for specific performance,Dix will:

• A) prevail,because the amount of the contract was less than $500.
• B) prevail,because there was part performance.
• C) lose,because the fair market value of the land is over $500.
• D) lose,because the agreement was not in writing and signed by Wilk.

---

Definitions:

Useful Life

The estimated time period that an asset is expected to be usable, contributing to the revenue-generating activities of a business.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an even portion of an asset's cost to each year of the asset's useful life.

Accumulated Depreciation

The total sum of depreciation expense that has been recorded on a company's assets up to a specific date, reflecting the loss of asset value over time.

Salvage Value

An asset's expected retainable value at the end of its beneficial life.