A Computer Manufacturer Offered to Sell Sophisticated Computer Equipment to Another

question 85

Multiple Choice

A computer manufacturer offered to sell sophisticated computer equipment to another country.Two days later,before the offer was accepted,Congress placed an embargo on all sales to this country;and therefore,the offer was terminated by the embargo.This is an example of:

• A)promissory estoppel.
• B)destruction of subject matter.
• C)intervening illegality.
• D)revocation.

---

Definitions:

Fair Value

The estimated market value of an asset or liability, based on current prices in an open and competitive market.

Cost Method

An accounting approach where the investment is recorded at its purchase cost without reflecting market value changes.

Carrying Value

Also known as book value, it's the amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation or amortization.

Dividend Distributions

Dividend distributions are payments made by a corporation to its shareholders, usually derived from the company’s earnings, representing a portion of the profits.