Arthur Is Driving Home from Work When He Runs Off

Multiple Choice

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.