Drake, a general contractor, received a bid from Vic's Paving, a subcontractor for a construction job and relied upon their bid when placing his own bid to win the contract offered by the local school district to build the new elementary school. Drake then contacted Vic to enter into a contract to do the paving work for the job. Vic told Drake that his bid was $5,000 short and that he could not move forward at that price. Vic demanded the extra $5,000. An irate Drake, found an alternate subcontractor to do the work for $2,000 more instead. Drake sued Vic for the $2,000. Evaluate their legal positions.

He moto hotel opened for business on may 1, 2017. here is its trial balance before adjustment on may 31. moto hotel trial balance may 31, 2017 debit credit cash $ 2,283 supplies 2,600 prepaid insurance 1,800 land 14,783 buildings 72,400 equipment 16,800 accounts payable $ 4,483 unearned rent revenue 3,300 mortgage payable 38,400 common stock 59,783 rent revenue 9,000 salaries and wages expense 3,000 utilities expense 800 advertising expense 500 $114,966 $114,966 other data: 1. insurance expires at the rate of $360 per month. 2. a count of supplies shows $1,050 of unused supplies on may 31. 3. (a) annual depreciation is $2,760 on the building. (b) annual depreciation is $2,160 on equipment. 4. the mortgage interest rate is 5%. (the mortgage was taken out on may 1.) 5. unearned rent of $2,580 has been earned. 6. salaries of $810 are accrued and unpaid at may 31