Reference no: EM132681542
On 11 August 2020, Vanya Ho entered into a contract with Diego Toh to renovate her school, The Umbrella Learning Centre and to set up the internet system for the school's online lessons starting in October. They agreed to the total sum of $100,000 with a 10% deposit of $10,000 to be paid on the signing of the contract. $20,0000 was to be paid upon the design being approved by Vanya Ho. The balance of $70,000 was to be paid on the completion of the renovation works. The contract provided that Diego Toh was to complete the renovation works and handover the school to Vanya Ho not later than 20 September 2020.
The design was approved by Vanya Ho on 18 August 2020. Diego Toh proceeded with the renovation which was completed on 19 September 2020. Vanya inspected the renovation work on 20 September 2020. She was not pleased with the internet system when she tested the wifi connection. The wifi signals were weak and created issues for running the online lessons. Diego Toh explained that his electricians have gone back to Malaysia and would only be back early 2021. He insisted that the renovation works including the setting up of the internet system were in accordance with the design as approved by Vanya.
On 21 September, Vanya Ho called an independent electrician, Klaus Soh, to inspect and advise on internet system. Klaus Soh explained that the internet system was poorly set-up. He quoted $2,000 to rectify the defects which could be completed by 25 September 2020.
On 22 September, Diego Toh contacted Vanya Ho and demanded payment of the balance amount of $70,000. Vanya Ho refused to pay the balance and insisted that Diego Toh rectify the internet system by 26 September 2020.
Advise Diego Toh on the following:
(a) Explain the ways in which a contract may come to an end.
(b) Diego Toh would like to claim the full amount of $70,000. Discuss the LEGAL PRINCIPLES concerning the performance of the contract, APPLY the legal principles, and CONCLUDE on whether Diego Toh could discharge the contract with Vanya Ho and claim the full amount of $70,000.
|
Prepare all journal entries inclusive from January
: Prepare all journal entries inclusive from January 1,2019 to December 31, 2020, assuming that: The shares acquired are only 1% of the outstanding stock
|
|
What is the npv of the project of pizza restaurant
: A pizza restaurant is considering whether to install a new pizza oven with an installed cost of $300,000. It will be depreciated straight-line to zero over the
|
|
What is the npv of the project
: What is the NPV of the project, if the restaurant pays tax 30% and the required rate of return for the project is 8% p.a.?
|
|
When should he elect to receive the income
: If the taxpayer faces a marginal tax rate of 31 percent in both Year 1 and Year 2, when should he elect to receive the income
|
|
Explain the ways in which a contract may come to an end
: On 11 August 2020, Vanya Ho entered into a contract with Diego Toh to renovate her school, The Umbrella Learning Centre and to set up the internet system
|
|
Calculate the intrinsic value of karoo limited
: Calculate the intrinsic value of Karoo Limited using a residual income model, assuming that after four years, continuing residual income falls to zero.
|
|
Gross margin percentage of the international division
: Walla Corporation's International Division consists of two of Walla's subsidiaries. One of the subsidiaries operates in the United Kingdom and the other on the
|
|
Planning The Project-Problem
: Identify a major public infrastructure project that is either underway, complete, or proposed in your region.
|
|
How should the net effect of these decreases
: To obtain 2005 cash basis net income, how should the net effect of these decreases be added to or deducted from accrual basis net income
|