Sally, a paralegal student, had often told her friend Jill how much she admired Jill’s MickeyMouse watch.

Sally, a paralegal student, had often told her friend Jill how much she admired Jill’s MickeyMouse watch.Last Monday, as the two were walking to class,Sally noticed that Jill was wear-ing a different watch and asked Jill about it. Jill replied that at her birthday party yesterday her boyfriend gave her this new watch.”In that case,”Sally inquired,”would you be interested in selling your Mickey Mouse watch to me?”Jill replied,”I paid$200 for it, but because we are friends,I will sell it to you for$100 and will bring the watch with me tomorrow.”Sally said,”Great, it’s a deal.”Unnoticed by Sally and Jill,Mike had overheard the conversation.”Wait,”Mike said.”I have always wanted a Mickey Mouse watch.I will give you$150 for the watch.”Jill thought about it for a moment and then turned to Sally and said,”Gosh,I’m sorry, Sally, but I’m afraid that unless you can match Mike’s offer,I will have to sell the watch to him.”Sally replied that she could not raise her offer. Mike, feeling a bit guilty ,told Sally that on Tuesday when he got the Mickey Mouse watch, he would no longer need his current watch and would give it to Sally.The next day Jill sold her watch to Mike. Mike, however, had a change of heart and refused to give his old watch to Sally. Who owns the watch and why?

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