What Was the Reason That Led to the Final Decision

question 30

Multiple Choice

What was the reason that led to the final decision by the court in the Hodge v. Shea case?

• A) The consideration offered by Dr. Hodge did not require an actual detriment.
• B) Dr. Hodge promised a benefit to which he had a pre-existing obligation.
• C) Dr. Hodge acted in haste in an effort to fortify what he must have realized was a dubious contract.
• D) Since Mr. Shea was not infirm to the point of incompetency to contract, the manifesting assent was binding.
• E) Mr. Shea's assent to the contract, without notice to Mr. Ransdell and under deliberate enticement, was not the product of an exercise of an informed judgment.

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Definitions:

Tax Losses

Financial losses that can be deducted from taxable income, ultimately reducing the amount of tax owed to the government.

Deferred Tax Liability

A tax obligation that arises from temporary differences between financial and tax reporting and is expected to be settled in future fiscal periods.

Consolidated SFP

Stands for Consolidated Statement of Financial Position, which is a financial report that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries.

Tax Value

The value assigned to an asset, liability, or transaction for the purpose of calculating taxes owed, which may differ from book or market values.