# Arthur is driving home from work when he runs off the road and hits a telephone pole. These are the losses he suffers: \$12,000 to repair the damage to his car, and, \$800 to rent a car while his car is being repaired. What is the correct name for each of these losses?

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## Arthur is driving home from work when he runs off the road and hits a telephone pole. These are the losses he suffers: \$12,000 to repair the damage to his car, and, \$800 to rent a car while his car is being repaired. What is the correct name for each of these losses?

A) The \$12,000 is an indirect loss, and the \$800 is a direct loss.

B) The \$12,000 is a direct loss, and the \$800 is also a direct loss.

C) The \$12,000 is a direct loss, and the \$800 is an indirect loss.

D) The total loss of \$12,800 is a direct loss.