Because the $750.00 was given as a donation to the non-profit organization, it will be viewed as an asset. Since the preparation of the tax return was given in exchange for the donation, it is considered a gift and thus not an asset.

Next, one must inquire as to whether the firm of Good and Good's liability should be measured at out of pocket cost, at full costs, or at market value? As has previously been explained, if sued for professional malpractice, the court is most likely to hold Good and Good liable for the full amount of damages to Mr. Pinchpenny that was caused by their professional negligence. Thus, Good and Good's liability is likely to be measured at market value.

The final question that needs to be asked is whether or not any amount in excess of what the firm of Good and Good intended to contribute to...
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