A Bailor Does Not Have a Duty to Compensate the Bailee

question 22

True/False

A bailor does not have a duty to compensate the bailee as reimbursement for costs incurred by the bailee in keeping the bailed property.

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Definitions:

Revised Annual Depreciation

An updated calculation of depreciation expense for an asset, altering the original depreciation schedule due to changes in estimation of useful life or resale value.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.

Salvage Value

The prognosticated worth of an asset at the close of its operational period.

Useful Life

The estimated duration of time that an asset is expected to be productive or useful, beyond which it is likely to be inefficient or obsolete.