Answer:
none
Explanation:
The Texas Real Estate Commission (TREC) requires that the seller of residential property comprising not more than one dwelling unit must file a Seller's Disclosure Notice. This excludes a condominium or a duplex. Also, if the house is new and has never been used for residential purposes, then the seller doesn't have to file a disclosure either.
The purpose of the disclosure is to inform any issues related with the house that the seller is aware of. But this disclosure does not substitute any inspections that the buyer may want to obtain.
The TREC Seller's Disclosure Notice is required for a new construction single-family site built home and a condominium, which both fall under residential property transactions. The requirement generally does not apply to commercial properties or duplexes, depending on specific circumstances.
Explanation:In Texas, the Texas Real Estate Commission (TREC) requires a Seller's Disclosure Notice for most residential property transactions. Among the options provided, a TREC Seller's Disclosure Notice must be given in the case of a new construction single-family site built home and a condominium.
Both properties are considered residential, and Texas law generally mandates that sellers of residential properties must provide buyers with a disclosure of the property's condition.
However, the requirement does not typically apply for a duplex (if it is regarded as a residential property, it might require disclosure, but this can depend on specific circumstances), and it does not apply to a commercial property as those are not included under the rules requiring residential disclosures.
Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Marianne has decided to see if she can sell them in Mexico, so she sets a price that is just over her cost. She figures if she makes even a little money, it would be worth it. Marianne is using ________ pricing.
Answer: Variable cost pricing
Explanation:
Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.
Marianne is using cost-plus pricing. This strategy involves setting the selling price just above the cost of production to ensure costs are covered and a profit is made. It is particularly useful when there is an overproduction of a product.
Explanation:Marianne's strategy of setting a selling price just above her cost to make a little profit is referred to as cost-plus pricing. Essentially, she has calculated her costs of production and then added a small margin for profit. This approach ensures she covers all her costs and makes a modest profit.
The method of cost-plus pricing is a common strategy in situations where businesses have large quantities of a product, like Marianne's overproduced chocolate bar. However, one should also consider market dynamics and competitive pricing to ensure their product is priced competitively. In manufacturing industries like the chocolate manufacturing, selling the overproduced goods at a lower price can be a better strategy than waiting for the product to sell at a higher price.
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In an open economy, as the price level increases, a(n) ____ in demand in the quantity of domestic goods results in a(n) ____ in the quantity of GDP demanded.
a. decrease, decrease
b. increase, increase
c. decrease, increase
d. increase, decrease
Answer:
a. decrease, decrease
Explanation:
When prices increase, domestic goods becomes more expensive and the quantity of domestic goods demanded falls and export falls.
Therefore, because of the decease in quantity of domestic goods demanded, the quantity of GDP demanded falls.
I hope my answer helps you
A. Both forward and futures contracts are traded on exchanges.
B. Forward contracts are traded on exchanges, but futures contracts are not.
C. Futures contracts are traded on exchanges, but forward contracts are not.
D. Neither futures contracts nor forward contracts are traded on exchanges.
Futures contracts are traded on exchanges while forward contracts are not. Futures contracts are standardized and publicly traded on futures exchanges while forward contracts are private agreements traded over the counter.
Explanation:The correct answer is C: Futures contracts are traded on exchanges, but forward contracts are not.
Futures contracts are standardized agreements to buy or sell an asset at a predetermined price on a specified future date, and they are traded on futures exchanges. These exchanges provide the marketplace where these contracts are bought and sold, thus making them easily accessible to interested parties.
In contrast, forward contracts also involve an agreement to buy or sell an asset at a predetermined price on a specified future date. However, forward contracts are not traded on exchanges. Instead, they are private agreements between two parties and are contracted in the over-the-counter (OTC) market where they can be customized to fit the specific needs of the contracting parties.
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Alcide mining company purchased land on february 1, 2017, at a cost of $1,190,000. it estimated that a total of 60,000 tons of mineral was available for mining. after it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. it estimates the fair value of this restoration obligation at $90,000. it believes it will be able to sell the property afterwards for $100,000. it incurred developmental costs of $200,000 before it was able to do any mining. in 2017, resources removed totaled 30,000 tons. the company sold 22,000 tons.
Answer:
COGS: 22,000 x $23 = 506,000
Ending Inventory: 8,000 x $23 = 184,000
Explanation:
acquisition cost: 1,190,000
development cost: 200,000
restoration cost: 90,000
salvage value: (100,000)
depreciable amount 1,380,000
1,380,000 / 60,000 tons = 23 dollars per ton:
COGS: 22,000 x $23 = 506,000
Ending Inventory: 8,000 x $23 = 184,000
The project scope statement should reference supporting documents, such as product specifications that will affect what products are produced or purchased, or corporate policies, which might affect how products or services are produced. True or false?
Answer:
True
Explanation:
A project scope statement describes the parts of a project: the milestones, requirements and boundaries.
When Jim, Jill, and Jeri take ownership to a Bakersfield home, they hold their ownership concurrently. Jim has the greatest proportion, with 45%, while Jill holds 30% and Jeri the last 25%. They each have the right to individually possess, will, or sell their interest. This is known as?
Answer:
Tenancy in Common
Explanation:
A common tenancy (TIC) is among three forms of concurrent property (defined as a common-owned property in which each owner owns a share of the estate). The other two styles are a joint tenancy and tenancy by the entirety.
A common tenancy does not typically have the right to survivorship. It means that if A and B are shared tenants of an Estate, and A dies, then A's share will not go to B. Rather, the share of A goes to the selected party in the will of A.
Final answer:
Jim, Jill, and Jeri's ownership situation, where they can individually possess, will, or sell their share of a property, is known as tenancy in common, a form of concurrent ownership.
Explanation:
When Jim, Jill, and Jeri hold concurrent ownership to the Bakersfield home, where Jim has a 45% proportion, Jill holds 30%, and Jeri the remaining 25%, and they each have the right to individually possess, will, or sell their interest, this type of property ownership is known as tenancy in common. Tenancy in common is a form of ownership whereby each owner possesses a fractional share of the entire property and has the right to transfer their share independently of the other owners.
When consumers are engaged in __________ the decisions and products usually feature (a) little to no risk; (b) low (relative) costs, including the costs associated with making bad choices; and (c) little to no information search. The menu of solutions is already known.
Answer:
The correct answer is routine problem-solving.
Explanation:
These are trivial routine day to day decision such as buying breakfast, purchasing pen and other small values items. These decisions do not have material financial impact if went wrong. Decision like purchasing new car, house and land etc are not included in these decisions.
However person disposal income and wealth can convert these routine problem-solving into planned one.
A basket of goods costs $200 in the base year and $210 just twelve months later. The price index in the second year is __________ ..
Answer:
105%.
Explanation:
Price index = (price of Market Basket of the year of interest / price of the Market Basket of the base year) × 100
Given,
Cost of basket of goods in base year = $200
Cost of basket of goods in year of interest = $210
Price index in year of interest (second year) = (210/200) × 100
= 105%
The price index in the second year is 105%.
In Geoffrey Chaucer's time, the makers of the fine objects we can see today in the world's great art museums learned their trade in associations called ______.a. clubsb. workhousesc. schoolsd. guildse. none of these
Answer:
D) guilds
Explanation:
New members would usually start as apprentices, and learn from other master members during a relatively long period of time. Apprentices were usually teenagers when they entered a guild and the learning period lasted up to 14 years. Once the apprentice mastered the crafting techniques, he became a master member.
Guilds were very important and powerful in medieval Europe from the 11th to 16th century. They were able to limit specialized labor, set prices and define tools and techniques.
Identify the false statement. Group of answer choices a.A monopolist and a perfectly competitive firm both produce where price equals marginal cost. b.A monopolist and a perfectly competitive firm both produce an output level where marginal revenue equals marginal cost. c.A monopolist and a perfectly competitive firm both maximize profits. d.A monopolist and a perfectly competitive firm both charge a price based on the demand curve facing the firm and the costs borne by the firm.
Answer:
The correct answer is option a.
Explanation:
A perfectly competitive market has large number of firms in the market, the firms are price takers. The firms face a horizontal line demand curve. The demand curve represents the marginal revenue as well as average revenue.
A firm is able to maximize profit by producing at the point where price or marginal revenue is equal to marginal cost.
A monopoly market has only single producer with no close substitutes. The firm is able to maximize profit by producing at the point where the marginal revenue is equal to marginal cost.
It does not produce at the point where price is equal to marginal cost.
The large, heterogeneous market from which specific submarkets (market segments) are drawn is called the aggregate market.
True or False?
Answer:
False
Explanation:
The large heterogeneous market is a market structure where diverse commodities and services are available to the customers. Overall, large heterogeneous markets are known as 'Mass markets' or ' Total product market'. This market satisfies customer needs due to mass production of distinctive goods. In the large heterogeneous market, customers have different perspectives, wants, choices and nature etc.
Merv's Hardware, a small family-owned store in Middletown, sells a 100-pack of garnet sandpaper for $35. The Home Shoppe, a large retail hardware chain in neighboring Morristown, sells the same product for $29. Based on this scenario, what would you expect Merv's immediate response to be?a) Merv will remove his advertisements and rely on word of mouth.b) Merv will reduce his price to respond to the price competition from the Home Shoppe.c) The Home Shoppe will initiate a non-price competition with Merv.d) The Home Shoppe will raise its price to respond to the price competition from Merv.
Answer: Merv will reduce his price to respond to the price competition from the Home Shoppe.
Explanation: Ideally, people always look for the best deal they can get. The home shoppe offers the same product for less price. Customers will naturally troop to the home shoppe because of the lower price of garnet sandpaper. In order for Merv to compete with a big store, he has to start with his prices first.
Which of the following multinational corporations (MNCs) places local nationals in key positions and allows these managers to appoint and develop their own people? . a) Regiocentric multinational corporations (MNCs) b) Ethnocentric multinational corporations (MNCs) c) Polycentric multinational corporations (MNCs) d) Globalcentric multinational corporations (MNCs).
Answer:
C) Polycentric multinational corporations (MNCs)
Explanation:
The word Polycentric comes from the Greek pólus "many", and kentrikós "center", therefore, a polycentric multinational corporation is a corporation that:
Is present in two or more nations, therefore, it is referred to as "multinational".Has many "centers" of operation, therefore, it is referred to as "polycentric".A polycentric multinational corporation (MNCs) establishes local people in the top management positions in each country. This can result in a more rapid adaptation to the foreign market.
Final answer:
Polycentric MNCs hire local nationals for key managerial positions, allowing these managers to appoint and develop their own people, understanding that this approach can be more culturally and contextually appropriate.
Explanation:
The multinational corporation (MNC) that places local nationals in key positions and allows these managers to appoint and develop their own people fits the description of a polycentric multinational corporation (MNC). Polycentric MNCs operate under the philosophy that the managerial and business strategies that work in one country will not necessarily be successful elsewhere. They use a host country-focused approach, meaning they hire management from within the host country to run the operations there, with the idea that locals will better understand the culture and environment. The correct answer to the student's question is c) Polycentric multinational corporations (MNCs).
The time value of money suggests that $1 in one year from now is worth less than $1 today.True / False.
Answer:
False, we conclude that $1 in one year from now is worth more than that of today.
Explanation:
The time value of money (TVM) is concept that suggests money available at present time is worth more than identical sum in future due to potential earning capacity.
This core principle in finance holds that the provided money can earn interest , and any amount of money is worth more the sooner it is received.
Also future money is not affected by inflation, only present money is.
Hence we conclude that $1 in one year from now is worth more than that of today.
The claim that $1 in one year from now is worth less than $1 today is true due to the Time Value of Money (TVM) principle, which explains the earning capacity of money.
Explanation:The statement is True. This concept is explained through the Time Value of Money (TVM) principle in finance and economics, which states that money available today is worth more than an identical amount in the future. This is due to the potential earning capacity of money, which can earn interest or yield returns on investment. If you have a dollar now, you can invest it to earn more money in the future. So essentially, $1 today is worth more than $1 a year from now.
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As you move up a linear demand curve, the price elasticity of demand in absolute value__________.
Answer:
As you move up a linear demand curve, the price elasticity of demand in absolute value decrease
Explanation:
solution
when we draw a graph between price and quantity
we can see there when we move down in a linear demand curve
than price elasticity of demand is decreases
as elastic demand is = [tex]\frac{lower\ segment}{upper\ segment}[/tex] .................1
so we can see when move down demand is decreases
so here correct fill up is decrease
Initially, Rhett believed he should maintain his production facilities within the United States and simply export his designer eyeglass frames to foreign sellers. However, he lacked expertise in exporting. Rhett decided to see if the federal government could provide any help by contacting a(n):
Answer:
Export Assistance Center
Explanation:
Export Assistance Center is the one which is established by the federal government to provide or offer the front line service and outreach for the operations to the US exporters.
These centres assist the business in US which are new exporting and would like to expand the additional markets of exports or to increase the market share in the existing markets.
So, Rhett lack in expertise in exporting so he decided to see if the federal government might provide help through contacting the export assistance centre.
Which of the following is a result of over-diversification through acquisition? Select one:
1. Corporate-level executives will have a rich understanding of all of the firm’s business units
2. Corporate-level executives tend to rely on strategic control when evaluating their business units’ performance.
3. Firms use acquisition as a substitute for innovation.
4. Managers become long-term in their orientation.
Answer:
3) Corporations use acquisition as a substitute for innovation.
Explanation:
The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.
Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.
Over-diversification through acquisition can result in executives having a weaker understanding of all business units due to the complexity and increased management layers, leading to a reliance on strategic control for performance evaluation and potentially using acquisition as a substitute for innovation.
One of the results of over-diversification through acquisition is that corporate-level executives might not have a deep understanding of each individual business unit due to the complexity and sheer number of those units. When a firm grows too large through acquisitions or mergers, there can be a duplication of services and an increase in management layers, which leads to communication complexity and possibly information overload. This complexity can detract from an executive's rich understanding of each business's specific needs and performance, and instead, they may have to rely more on strategic control mechanisms to evaluate performance. Additionally, the engagement in frequent acquisitions could mean the firm is using acquisitions as a substitute for innovation, rather than focusing on organic growth and innovation within their existing lines of business.
Which of the following is true of currently attainable standards? a.Currently attainable standards can be achieved under efficient operating conditions. b.Currently attainable standards demand maximum sales price. c.Currently attainable standards do not allow for normal breakdowns, interruptions, and less than perfect skill. d.Currently attainable standards demand maximum efficiency.
Answer: a).
Currently attainable standards can be achieved under efficient operating conditions.
Explanation: currently attainable standards are standards which have been found to be achievable considering the current prevailing circumstances,this standards re usually set up for use in the short term it is not expected be achievable during the long term.
Currently achievable standards are always difficult to achieve but if resources are efficiently managed/ used it will be achieved. Currently achievable standards are usually set to evaluate performance especially in cost,time and materials management.
Final answer:
The true statement about currently attainable standards is that they can be reached under efficient operating conditions. They incorporate realistic expectations of operational variables and aim for productive efficiency and allocative efficiency in a perfectly competitive market.
Explanation:
The question asks which statement is true regarding currently attainable standards. The correct answer is: a. Currently attainable standards can be achieved under efficient operating conditions. These standards anticipate normal breakdowns, interruptions, and account for human capabilities, aiming for efficiency without expecting perfection. Currently attainable standards focus on producing without waste and selling goods at the lowest possible average cost, known as productive efficiency. On the production possibility frontier, this efficiency is achieved when the market price equals the minimum of the long-run average cost curve in a perfectly competitive market. In contrast to productive efficiency, allocative efficiency ensures resources are allocated to their best alternative use, providing maximum societal satisfaction. An analysis of other market structures using these concepts can determine if they're less efficient, or 'imperfect,' in comparison to the 'perfect' competitive market
One reason a long-tenured top-level manager may hesitate to conclude the firm's structure is a problem is that doing so: a. suggests that the firm's previous choices were not the best ones. b. will only lead to inefficiencies. c. indicates to competitors that the firm is vulnerable to a hostile takeover. d. requires that the firm undertake a multi-year restructuring period that will delay retirement.
Answer: suggests that the firm's previous choices were not the best ones.
Explanation: For a long-tenured top-level manager to make such proclamation, shows the inefficiencies of the firm which he is a part of. He obviously has been with the firm for a very long time and making that proclamation will also be a dent in his image as a manager.
________ refers to a dimension of intellectual ability which involves identifying a logical sequence in a problem and using this logical sequence to solve the problem.
A) Inductive reasoning
B) Spatial visualization
C) Form perception
D) Visual perception
E) Visual prosthesis
Answer: inductive reasoning
Explanation: Inductive reasoning refers to a reasoning process wherein the assumptions are interpreted as providing some justification for the conclusion's reality; this contrasts with deductive reasoning.
While the result of something like deductive reasoning is absolute, given the evidence presented, the truth about the conclusions of an inductive reasoning may be possible. Inductive reasoning generalizes widespread through limited experiences. There is always data, essentially, so conclusions are based on those in the information.
Thus, from the above we can conclude that the correct option is A.
An investor pays $900 for a bond with a principal value of $1,000 and a coupon rate of 8%. How much in annual interest will the investor receive on this investment?
Answer:
Annual Interest = $80
Interest rate = 8.89%
Explanation:
The investor pays discounted price for this bond.
We know, Annual Interest = Coupon payment/Market value
Given,
Coupon payment = Principal value*Coupon rate
Coupon payment = $1,000*8% = $80
Market value = Price pays for the bond = $900
Therefore, the annual interest rate = $80/$900
Annual Interest rate = 8.89%
Note that, coupon payment is the annual interest rate.
Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day.
Should Cindy hire a 12th worker?
a. Yes
b. No
c. You need more information to figure this out
Answer:
A: Yes
Explanation:
The additional worker would cost $100 per day i.e. Marginal Cost = $100
Whereas the Marginal Revenue = (2,750-2,600) = $150
Since Marginal revenue exceeds marginal cost by (150-100) = $50, Cindy should hire 12th worker.
A client presents to the emergency department with severe epistaxis. Which client position is most beneficial?
Answer:
Sitting with head tilted slightly forward
Explanation:
Epistaxis is an acute haemorrhage from the nostril, it is decease which causes nose infection and can result in severe anxiety. According to various doctors, the patient's position can slow down the negative effects of epistaxis. The client must sit with head titled slightly forward to slow down the process of the disease until it is properly treated by a certified ENT specialist.
Answer:
Sitting with head tipped backwards
Explanation:
Below are transactions for Lobos, Inc., during the month of December. Calculate the amount of revenue to recognize in December.
A. Receive $1,200 cash from customers for services to be provided next month.
B. Perform $900 of services during the month and bill customers.
C. Customers are expected to pay next month.
D. Perform $2,300 of services during the month and receive full cash payment from customers at the time of service.
Answer:
$ 3,200
Explanation:
As per the accrual principle, income and expenses are recognized when they are incurred, regardless of whether payment has been made or received. For example, expenses are recognized when a product is bought, or service utilized even if payment has not been made.
For Lobos Inc., income for December will be
$ 900 of services to customers and payment expected next month
$ 2300 services performed and paid in December
The $1200 payment for next month is not an income for December. The services have not been performed; hence income cannot be recognized.
Total income will be $900 + $2300= $ 3,200
A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There are two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?
Answer:
When doing time trend analysis for financial ratios we can know how a company's ratio's have changed over time or if they have remained the same, so for example if a company's current ratio was less than 1 a year ago and is 3 now it means that the company was not very liquid a year ago but since then has made changes because of which it is liquid now, so we can see how a company has performed over a certain period of time.
On the other hand peer group analysis tells us how a company is performing compared to other companies in the same industry. For example if our cement company has a profit margin of 7% but the industry average is 15% we know that our company is doing something wrong or different as compared to the industry and we can look into it.
Explanation:
A mutual fund manager would use beta as part of the analysis of the funds performance in order to ___________.
Answer:
A mutual fund manager would use beta as part of the analysis of the fund performance in order to measure systematic risk.
Explanation:
Systematic risk is a risk that is not diversifiable and market imposed. It is measured by beta. A mutual fund manager uses beta as part of the analysis so as to measure systematic risk.
Acme Corporation (Scenario) Acme Corporation's management feels that employees could be more motivated by their jobs. The jobs were enriched earlier and some improvements were seen in motivation. Most jobs at Acme were redesigned to allow the employees to complete a whole and identifiable piece of work. This fits ________, a core dimension of the job characteristics model.
Answer: TASK IDENTITY
Explanation:
In simple words,the degree to which a work includes doing a comprehensive piece of work from start to finish and recognizable with a noticeable result as opposed to doing just a segment of the job.
Job identity is a key component of job satisfaction.Task identity is the degree to which-from starting point A to completion point B-a job is done. In other words, it represents to what extent the result is anticipated or noticeable.
Hence from the above we can conclude that the company is doing the task identity.
A lender offers an investor a maximum 70% LTV loan on the appraised value of a property. If the investor pays $230,000 for the property, and this is 15% more than the appraised value, how much will the investor have to pay as a down payment?
Answer:
the correct answer is
First, the sale price is 115% of the appraised value, so the appraised value is $230,000 / 115%, or $200,000. The lender will lend $140,000 (70% of appraised value), so the investor will have to come up with $90,000 ($230,000 - $140,000).
good luck
Final answer:
The investor will have to pay a down payment of $90,000, calculated by finding the appraised value ($200,000) and subtracting 70% of this value ($140,000) from the purchase price ($230,000).
Explanation:
To calculate how much the investor will have to pay as a down payment, we first need to determine the actual appraised value of the property. Since $230,000 is 15% more than the appraised value, we can find the appraised value by dividing $230,000 by 1.15:
Appraised Value = $230,000 / 1.15 = $200,000
Next, we need to calculate the maximum loan amount the lender will offer, which is 70% of the appraised value (the Loan-to-Value ratio, or LTV):
Maximum Loan Amount = 70% of Appraised Value = 0.70 * $200,000 = $140,000
Since the maximum loan amount is $140,000 and the investor pays $230,000 for the property, the down payment would be the difference:
Down Payment = Purchase Price - Maximum Loan Amount = $230,000 - $140,000 = $90,000
Thus, the investor will need to pay $90,000 as a down payment.
When comparing the Alternative Minimum Tax calculation to the Regular income tax calculation, which deductions are ONLY permitted in the Regular income tax calculation?
I Personal exemption
II State and local tax deduction
III Miscellaneous itemized deductions
IV Medical expense deduction
A. I and II only
B. III and IV only
C. I, II, III
D. I, II, III, IV
Answer:
C) I, II, III
Explanation:
When you are calculating alternative minimum tax many of the basic deductions allowed when calculating regular income are not permitted. When you are calculating alternative minimum tax there are no personal exemptions, no deductions for state and local taxes, no standard deductions and no deductions for miscellaneous items.
Medical expenses are deductible when calculating alternative minimum tax, but only if they exceed 10% of adjusted gross income (AGI).
The deductions that are only permitted in the Regular income tax calculation and not for the Alternative Minimum Tax include personal exemptions, state and local tax deductions, and miscellaneous itemized deductions. Option C is correct.
When comparing the Alternative Minimum Tax (AMT) calculation to the Regular income tax calculation, certain deductions that are permitted in the Regular tax calculation are disallowed for the AMT. For the AMT, you can't deduct:
Personal exemptionsState and local tax deductionsMiscellaneous itemized deductions (such as unreimbursed employee expenses, tax preparation fees, and investment expenses)Medical expenses are typically deductible for both the AMT and the Regular tax calculations, subject to certain thresholds. Therefore, the answer to the question is: I, II, III
These rules indicate the distinct differences in allowable deductions between the AMT and the Regular tax systems, highlighting how the AMT targets certain tax benefits to ensure that those with higher incomes pay a minimum amount of tax.
Lueretained Attorney to appeal Lue's criminal conviction and to seek bail pending appeal. The agreed upon fee for the appearance on the bail hearing was $50 per hour. Attorney received $800 from Lue of which $300 was a deposit to secure Attorney's fee and $500 was for bail costs in the event that bail was obtained. Attorney maintained two office bank accounts: a "Fee Account," in which all fees were deposited and from which all office expenses were paid, and a "Clients' Fund Account." Attorney deposited the $800 in the "Clients' Fund Account" the week before the bail heating. Attorney expended six hours of time on the bail hearing. The effort to obtain bail was unsuccessful. Dissatisfied, Lue immediately demanded return of the $800. It is now proper for Attorney to:
Answer:
The attorney should write a check to Lue for $500 and leave the rest of the money ($800 - $500 = $300) in the Clients' Fund Account. He also has to explain Lue that his legal fees were $300 (= $50 per hour x 6 hours) and resolve that matter with him.
The client is responsible for paying his legal fees whether he wins or losses a case unless some other specific arrangement was made.