Question

Judy's cousin skip tells judy that he will sell her car for her when she leaves the country for a church mission for two years. skip tells her that he will do it for no charge to her. while judy is gone, skip forgets about the agreement and does not attempt to sell the car. judy:

Answer 1

Judy left her car unsold, and her cousin also didn't sell the car in her absence, so it is like leaving an asset to depreciate. As the car is an asset and assets depreciate with the passage of time, so Judy asset value will decrease in two year period. Now if she comes back and sells her car after two years, the value of the car is definitely won't be the same as it could be two years ago. Depreciation value will add up and the car's value will decrease.

Answer 2

Judy will have earned less money even if Skip still decides to sell the car. This is due to depreciation - the value of the car decreases as time progresses. Skip forgetting to sell the car caused the car's value to decrease further, making it less profitable as time goes by.