Answered: Is Thompson correct? If not, what type…

Business

Accounting

Is Thompson correct? If not, what type of beneficiary is he and why?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 86DC

See similar textbooks

Related questions

Q: George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two…

A: Insurance is a contract between two parties , where one party provides the protection against…

Q: Gary owns a commercial building and leased his premises to John to conduct a bakery business. Under…

A: Lease: Lease is the process of lending the asset or property for a fixed period. The lessor collects…

Q: ad executed a written contract which contained a liquidated damages clause for $200 in the event…

A: To explain the given case as,

Q: Due to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur.…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…

Q: Amy Klein was seriously injured when her motorcycle was struck by a vehicle driven by Christopher…

A: Kemper's lawyer kept in touch with statewide cases, the executive for Brown back up plan, requesting…

Q: Ann's car has been repossessed by Bob Finance without any notice after Ann defaulted on two…

A: Hire purchase is a method of purchasing high-priced consumer items in which the buyer pays security…

Q: Which is not a cause for a valid disinheritance of children or descendants? Parents have abandoned…

A: Valid reasons of children and descendants to be disinherited are (1) If a child or descendant has…

Q: Amy is a creditor of Bia. In order to escape the liability to Amy, Bia sells all his property to…

A: Recission of the contract means unwinding of the transaction, where the payer does a transaction to…

Q: Eduardo was granted a loan by XYZ Bank for the purpose of improving a building which XYZ leased from…

A: Under Article 1207 of the Civil Code, a creditor has the right to demand the full payment from any…

Q: Darwin Corporation's attorney has provided the following summaries of three lawsuits against Darwin:…

Q: George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two…

A: Insurance risk management seems to be the evaluation and measurement of the probable and financial…

Q: Reggie was hosting a BBQ when the deck fell off his house. Several of his friends were hurt in the…

A: It is very important now a days to get an insurance done. Insurance saves an individual of protects…

Q: Nadine visits Urban Air, a trampoline park. Before Nadine can enter the trampoline park, Urban Air…

A: This is a Multiple Choice Question in which we have to select the correct option

Q: Amar Jain purchased a second hand car in December 2010, which was insured by New India Assurance by…

A: Firstly, Let's see what is Insurance - It is basically an arrangement by which the company…

Q: Finley Motor Company sells an automobile to Sara and retains a security interest in it. The…

A: Proceeds is defined as an amount of the received funds, which has the particular activities or…

Q: Prior to that incident, what action should have been taken for James? What was going to happen to…

A: Drivers who strike pedestrian can face criminal and civil consequences, Depending on the…

Q: Hammer regularly took his car to be serviced at his local garage, Vanilla Ice Limited. On several…

A: Given: Hammer regularly took his car to be serviced at his local garage, Vanilla Ice Limited. On…

Q: an owner lists a property with a broker through an associate broker. which of the following would…

A: Agency Relationship: It's a fiduciary relationship formed when one person expresses agreement to…

Q: Lynn and Jack jointly own shares of stock of a corporation, have a joint bank account, and have…

A: Lynn and Jack are partners who jointly own shares and real estate. Lynn and Jack shared the profits…

Q: Varney operated one of two 5-ton cranes in a factory. Both cranes were to act simultaneously in…

A: Answer - Negligence - means conduct which falls below the standard of ordinary care by a reasonably…

Q: Hanover leased a portion of his farm to Brown and Black, doing business as the Colorite Hatchery.…

A: Case summary:BR and BL were partners involved in hatcherybusiness. BR and BL took H's premises for…

Q: Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000.…

A: A written instrument used mainly for international trade binding a party to pay a certain fixed…

Q: Langstraat, age seventeen, owned a motorcycle that he insured against liability with Midwest Mutual…

A: L can recover from MMIC after his accident for the following reasons : 1. He is a minor when…

Q: Felix is a property claims adjuster for a large property insurer. Janet is a policyholder who…

A: The above is the case of insurance. Insurance refers to the policy received by an individual or an…

Q: Richard sold a parcel of land belonging to him to Ping through his agent, Francisco, without…

A: Here in this situation Ricard sells his property to ping through the help from the Agent. There is…

Q: Robert is shopping in the local supermarket and is injured when he slips on the wet floor which has…

A: Law of tort of negligence states that no individual should suffer because of negligent mistakes of…

Q: Virginia has business property that is stolen and partially destroyed by the time it was recovered.…

A: The book value of Property = 14,000 $ loss in the book value = 10,000 $ New book value = 4,000$…

Q: Antoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had…

A: NOTE : As per Bartleby guidelines, when multiple independent questions are given then first question…

Q: Quince owns a used-car lot where Ray works as a salesperson. Quince tells Ray not to make any…

A: When there is contract an agreement between two person it is duty of both the parties to be abide by…

Q: 8. Giancarlo hired Hometown Handyman (HH) to renovate his home. Due to the extremely careless…

A: As per the Law, personal injury or damages get compensated, some compensation arises with the cases…

Q: Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later,…

A: Answer a: Except where the interest is voidable by the creditor who secured a judicial lien on the…

Q: When Nancy's aunt left for her annual holiday vacation, she left Nancy in charge of her coffee shop.…

A: Authority is referred to the power that an individual possess to make decisions, give orders or have…

Q: George and Emily Cosgrove of Athens, Georgia, recently had a fire in their garage that destroyed two…

A: Insurance is a contract between two parties , where one party provides the protection against…

Q: David owns a liquor store in a high-crime area. In order to obtain a reduced insurance premium,…

A: Insurance of a property refers to the arrangement in which the insurance company pays the…

Q: A comprehensive general liability policy includes property damage coverage for which of the…

A: A comprehensive general liability insurance policy is the combination of coverages for public…

Q: Mick was a flood victim and had to spend a good amount to restore his home after the flood. His…

A: Auditing is the systematic and independent examination of financial information of an entity whether…

Q: Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as…

A: Answer

Q: Hunn injured herself when she slipped and fell on a loose plank while walking down some steps. The…

A: Ms. Hunn checked into a hotel, and she accidentally fell when she got off the stairs. She was…

Q: Mr. A was a traveling salesman on a salary basis. In the course of his travel, his own car that he…

A: The loss is the monetary loss which is incurred during the year by a taxpayer by way of either…

Q: Green, a police officer, suspected that Brown was engaged in illegal racketeering activities. To…

A: GIVEN FACTS ÷ Green, a police officer, suspected that Brown was engaged in illegal racketeering…

Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Thompson’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired Cannon to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on Cannon’s report. Thompson sued the insurer and Cannon. Thompson claimed to be a third party beneficiary of the Cannon-insurer contract.

Is Thompson correct? If not, what type of beneficiary is he and why?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Murray's employer was fined. In retaliation, Murray's employer fired him and made deliberate efforts to prevent Murray from obtaining other employment. Murray sued the employer, claiming that his reputation had been damaged. Murray won his lawsuit and received an award for "damages to his personal and professional reputa- tion and for his mental suffering." Now he would like to know whether the award is taxable. He argues that he was awarded damages as a recovery of his human capital and that a recovery of capital is not income. Is Murray's logic comrect?
Stan sold goods to Bill in good faith, believing him to be a principal. Bill in fact was acting as agent for Nancy and was within the scope of his authority. The goods were charged to Bill, and on his refusal to pay, Stan sued Bill for the purchase price. While this action was pending, Stan learned of Bill’s relationship with Nancy. Nevertheless, thirty days after learning of that relationship, Stan obtained judgment against Bill and had an execution issued that was never satisfied. Three months after rendition of the judgment, Stan sued Nancy for the purchase price of the goods. Is Nancy liable? Explain.
Nadine visits Urban Air, a trampoline park. Before Nadine can enter the trampoline park, Urban Air requires her to sign a release stating that Urban Air will not be held responsible for any injury of any kind that Nadine incurs while on Urban Air property, no matter what the cause of the injury is. While Nadine is jumping on a trampoline, her boyfriend Trevor joins her. Trevor’s ex-girlfriend Valarie, who is an Urban Air employee, becomes enraged and pushes Nadine off the trampoline. Nadine breaks an arm in the incident. Who can Nadine sue for her injuries? a) Urban Air only b) Nadine cannot sue anyone because she signed a release of liability form. c) Valarie and Urban Air Select correct answer
After agreeing to rent a car from Drive-Around Inc., Eden is given the keys to one of the agency’s cars by Fess, a Drive-Around employee. With respect to the bailed property, this is a. not a delivery. b. an involuntary delivery. c. a constructive delivery. d. a physical delivery.
Gary is the owner of a commercial building, and he has leased his space to John in order for him to operate a baking company. According to the terms of the lease agreement, John is responsible for repairing any changed or damaged components of the building once the lease period has expired. However, John is unable to restore Gary's building, which has been destroyed as a result of the installation of equipment and fixtures. Gary agreed to reimburse John $3,100 in order to meet the repair costs.
Sally is an employee of Blue Corporation. Last year, she purchased a very expensive computer with her own funds. She used the computer 100% for business purposes. During the current year, the computer was completely destroyed in a fire. Blue Corporation did not reimburse her for her loss. Discuss whether Sally’s loss will create or increase Sally’s net operating loss. How does Sally treat the loss (carryback or/and carryforward periods)? If a taxpayer who sustains a casualty loss in an area designated by the President of the United States as a disaster area, he or she may take the loss in the year in which the loss occurred or elect to take the loss in the previous year. Identify factors that should be considered in deciding in which year to take the loss
Langstraat, age seventeen, owned a motorcycle that he insured against liability with Midwest Mutual Insurance Company. He signed a notice of rejection attached to the policy indicating that he did not desire to purchase uninsured motorists’ coverage from the insurance company. Later he was involved in an accident with another motorcycle owned and operated by a party who was uninsured. Langstraat now seeks to recover from the insurance company, asserting that his rejection was not a valid rejection because he is a minor. Can Langstraat recover from Midwest? Explain.
The negligence of Aivee, driver of a certain bus company, resulted in the death of JP's wife, physical injuries to JP that prevented him from working for a month, and the total wreck of JP's brand new car which he had bought for P400.000. In the action for damages filed by JP against the bus company, the court awarded the following: • P30,000 for JP's injuries consisting mainly in the loss of his right hand; • P45,000 for JP's loss of one month salary: • P25,000 for the death of his wife: • P100,000 moral damages on account of the death of JP's wife; and • P800,000 for the loss of JP's car. How much is excluded from gross income? a Zero b. P155,000 c. P555,000 d. P955,000