(Use the Following Information to Answer Questions

question 37

Multiple Choice

(Use the following information to answer questions
Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd.Cantwell owes Broadnorf $4,000.Ferd had never heard of Broadnorf before his recent contract with Cantwell.
-Cantwell,by entering into his agreement with Ferd,has

• A)extinguished his obligation to Broadnorf.
• B)made a partial delegation of his duty to pay Broadnorf.
• C)made an partial assignment of his duty to pay Broadnorf.
• D)created a three-party novation,also referred to by Justice Baadoza in Marbury v.Madison as a "three-legged monte."

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Definitions:

Amortization Expense

The method of incrementally expensing the original value of an intangible asset throughout its period of utility.

Straight-Line Amortization

A method of gradually writing off the nominal value of an intangible asset over its useful life in equal installments.

Business Combination

A transaction or other event in which an acquirer gains control over one or more businesses, possibly resulting in a new entity.

Fair Value Increment

The increase in the recorded cost of an asset over its previously recognized value, often assessed during business combinations to reflect current market valuations.