CPA Question: Able hired Carr to restore Able's antique car for $800. The terms of their...

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CPA Question: Able hired Carr to restore Able's antique car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within one year. The agreement is: (a) Unenforceable because it covers services with a value in excess of $500 (b) Unenforceable because it covers a time period in excess of one year (c) Enforceable because personal service contracts are exempt from the statute of frauds (d) Enforceable because the work could be completed within one year Strategy: This is a subtle question. Notice that the contract is for a sum greater than $500. But that is a red herring. Why? The contract also might take 18 months to perform. But it could be finished in less than a year. (See the "Result" at the end of this section.)