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In December 1991, NSI contracted to provide laundry service for Secrist's nursing home for a three-year period. Secrist used the service until March 1993, when she unilaterally terminated the contract without NSI's consent. The written contract provided for liquidated damages in the event of an unlawful termination. The damages were 40 percent of the anticipated gross receipts under the contract for the unexpired term - 30 percent for overhead and 10 percent for profits. NSI sued to collect the liquidated damages. The trial court found the liquidated damages provisions of the contract excessive because they included 30 percent recovery for overhead after 15 months of contract period had been completed. Was the trial court correct in rejecting the overhead portion of the liquidated damages clause as excessive? Why?
Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depreciation life, determine the allowable straight line depreciation ded..
How does a cut in interest rates that increases investment affect the quantity of real GDP demanded, the aggregate demand curve, real GDP, and the price level?
You make monthly deposits of $340 into an account that pays 3% per year. How much larger would the balance be after 7 years if interest is compounded continuously compared to monthly? Please provide steps.
define scarcity and opportunity cost. what role these two concepts play in the making of business decisions?a what is
What is the difference between cost-push and demand-pull inflation? Which was the primary cause of inflation in the early 1970's? What type of inflation had the Federal Reserve been trying to prevent in 1998 and 1999? What about in 2005 and 2006?
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
In the model that we have studied, consumption is a function of disposable income or income minus taxes C(Y −T), which implies that taxes T are a lump-sum subtraction from income Y. Derive the expression for the government purchases multiplier dY dG ..
Dane decides to give up a job earning $100,000 every year as a corporate lawyer also converts the duplex that he owns into a UFO museum had been renting the duplex for $20,000 a year.
Suppose that fixed cost for a firm in the automobile industry is $5 billion (i.e., F = 5 billion) and that variable cost costs are equal to $17,000 per finished product (i.e., c = 17, 000). Calculate the equilibrium number of firms in the U.S. and Eu..
A trader sells a 2-month call option contract on 100 shares of a stock with strike price $50. The price of the option is $5. Suppose the options are held until the end. What is the trader’s profit if the stock price is $58 then?
Here are some hypothetical numbers used to illustrate the ideas of trade-offs, specialization, and comparative advantage. Assume Sri Lanka, using all her resources efficiently, can produce either 1,000 bags of rice OR 3,000 bags of tea. Let's also as..
You have just started a new job and one of the fringe benefits is a company contribution of $5,000 every year into a retirement savings account. Assuming the contribution amounts remain unchanged and that the account earns an average of 8% per year, ..
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