Trinitron, Inc purchased a new molding machine for $85,000. The company paid $8,000 for
shipping and another $7,000 to get the machine integrated with the company's existing assets.
Trinitron must maintain a supply of special lubricating oil just in case the machine breaks down.
The company purchased a supply of oil for $4,000. The machine is to be depreciated on a
straight-line basis over its expected useful life of 8 years. What will depreciation expense be during
the first year?
A) $12,500 B) $11,500 C) $13,000 D) $11,625
A
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In the context of the specific environment of an organization, which of the following is a difference between opportunistic behavior and relationship behavior?
Question options: Opportunistic behavior is observed when both buyers and sellers show least reliability on the other, whereas relationship behavior is observed when both buyers and sellers believe in creating short-term client relationships. A low degree of buyer or seller dependence can lead to opportunistic behavior, whereas a high degree of buyer or seller dependence can lead to relationship behavior. In opportunistic behavior, either the buyer or the seller benefits at the expense of the other, whereas in relationship behavior, both the buyer and the seller mutually benefit. Opportunistic behavior leads to compromises that both the supplier and the buyer agree upon, whereas relationship behavior leads to development of new business relationships when existing ones fail to work.
Under UCC Section 2-201, contracts for the sale of goods of $500 or more fall within the statute of frauds and must be in writing to be enforceable. Exceptions to this rule include all but which of the following?
A) the agreement is between a merchant seller and a non-merchant buyer B) one of the parties to a suit admits in writing or in court to the existence of an oral contract C) a buyer accepts and uses the goods D) the contract is between merchants, and the merchant who is sued received a written confirmation of the oral agreement and did not object within 10 days.