Dave Company sold assets to Frank Company with an alleged value of $2,800,000. Frank Company paid $2,100,000 for the assets. The actual value of the assets was $1,800,000. Using the "benefit-of-the-bargain" damage loss rule, the fraud damages would be:
Dave Company sold assets to Frank Company with an alleged value of $2,800,000. Frank Company paid $2,100,000 for the assets. The actual value of the assets was $1,800,000. Using the "benefit-of-the-bargain" damage loss rule, the fraud damages would be:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dave Company sold assets to Frank Company with an alleged value of $2,800,000. Frank Company paid $2,100,000 for the assets. The actual value of the assets was $1,800,000. Using the "benefit-of-the-bargain" damage loss rule, the fraud damages would be:
| A. |
$300,000.
|
|
| B. |
$1,000,000.
|
|
| C. |
$1,800,000.
|
|
| D. |
$2,800,000. |
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