Recreational Pools,Inc

question 7

Multiple Choice

Recreational Pools,Inc. ,agrees to build a swimming pool for Sandy,but fails to build it according to the contract specifications.Sandy hires Total Fix-It Company to finish the project.Sandy may recover from Recreational Pools

• A)the contract price less costs of materials and labor.
• B)the contract price.
• C)the costs needed to complete construction.
• D)profits plus the costs incurred up to the time of the breach.

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Definitions:

Depreciation Expense

A non-cash expense that reduces the value of an asset over time due to wear and tear, ageing, or obsolescence.

Schedule E

Schedule E is a form used for tax filing in the U.S. that reports income and losses from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

IRS Method

A term not specifically defined but often refers to the procedures, formulas, or rules established by the IRS for calculating taxes, deductions, and credits.

Royalty Income

Income derived from the use of an individual's property, such as patents, copyrights, music, or books, typically based on a percentage of revenues.