Preston owns a parcel of land. The estimated fair market value of the land is $230,000....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Preston owns a parcel of land. The estimated fair market value of the land is $230,000. Preston paid $120,000 for the land. Which of the following scenarios is an example of a non-arm's length transaction? ****** Choose the correct answer. A. Preston lists the property for sale with a real estate agent. After two months on the market, Preston decides to sell the land to his son Javier for $167,000. B. Preston lists the property for sale with a real estate agent. After two months on the market, a client of the realtor makes Preston an offer of $175,000. C. Preston lists the property for sale with a real estate agent. After nine months on the market, Preston decides to sell the land to his friend Sadie for $230,000. D. Preston lists the property for sale with a real estate agent. The realtor has a client who is willing to pay $188,000 for the land. Preston accepts the offer. Preston owns a parcel of land. The estimated fair market value of the land is $230,000. Preston paid $120,000 for the land. Which of the following scenarios is an example of a non-arm's length transaction? ****** Choose the correct answer. A. Preston lists the property for sale with a real estate agent. After two months on the market, Preston decides to sell the land to his son Javier for $167,000. B. Preston lists the property for sale with a real estate agent. After two months on the market, a client of the realtor makes Preston an offer of $175,000. C. Preston lists the property for sale with a real estate agent. After nine months on the market, Preston decides to sell the land to his friend Sadie for $230,000. D. Preston lists the property for sale with a real estate agent. The realtor has a client who is willing to pay $188,000 for the land. Preston accepts the offer.
Expert Answer:
Answer rating: 100% (QA)
ANSWER OPTION 1 IS THE CORRECT OPTION EXPLANATION iA non arms len... View the full answer
Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these accounting questions
-
The Cornillies listed with a real estate agent a home for sale. Patrick and Anne Giannetti offered $155,000 for the home and submitted a deposit in the amount of $2,500. The Cornillies countered this...
-
Dakota Conrad owns a parcel of land he would like to sell. Describe the circumstances in which the sale of the land would generate 1231 gain or loss, ordinary gain or loss, or capital gain or loss....
-
Assume Sub owns a parcel of land that cost $300,000. It bought the year in Year 1. It is now Year 20, and the land is worth $1,000,000. (27 points) What value should the land be on Subs books at? (3)...
-
The drawing shows a frictionless incline and pulley. The two blocks are connected by a wire (mass per unit length = 0.0250 kg/m) and remain stationary. A transverse wave on the wire has a speed of...
-
What documents must be present to trigger the recording of a sale (and associated receivable) in the accounting records?
-
Assume you work in the human resource department of a medium-size manufacturing company (annual sales of $ 300 million). The company has been unionized for many years but has never had a strike. The...
-
Service Revenue} \(\mathrm{H} \& \mathrm{R}\) Wholesalers is a retailer providing low-cost, bulk items to small companies. Companies must pay an annual membership fee of \(\$ 100\) to access H\&R's...
-
The Chicago Wolves play in the American Ice Hockey League. The Wolves play in the Downtown Arena, which is owned and managed by the City of Chicago. The arena has a capacity of 17,500 seats (6,500...
-
8) Find the solution set (x, y, z) of the system : 3x - 4 + 2z = -2y 4y + 9 -2z = 6x 9x - 2y = 10 - 2z a ) O 2 b ) O NOW c) O d) o (3 , - 2 , - 3
-
ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On...
-
Physics Lauren has a bow that can shoot arrows at speeds of 0.3c. She is travelling across the Great Sandy Desert to her next archery competition on an ultrafast train that moves at a speed of 0.5c....
-
Suppose you receive Y1 of your income this period and Y2 of your income in the next period. If you can either borrow or lend at an interest rate r, what is the most you can consume in the future...
-
A friend of yours is graduating college next month. He has had a credit card and student loans for the past few years, but he's never bothered to check his credit report. Why is it vital that your...
-
What is the term for a cost estimate focused on the budget year (first year of the Program Objectives Memorandum (POM)) prepared for inclusion in the Department of Defense (DoD) budget to support...
-
The probability of rain on any day in the month of April is 2 8 % . The probability that will be windy on any day in the month of April is and the probability of both is 1 5 % . What is the...
-
Question 6 2 Points A Carnot heat engine has an efficiency of 40 %6. If the same engine was used as a Carnot refrigeration cycle what would be the coefficient of performance and the heat absorbed if...
-
Find the annual growth rate of the quantity described below Round your answer to two decimal places The annual growth rate is The amount of water used in a community increases by 16 over a 7 year...
-
Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the...
-
Assume all of the same facts as in Problem I:6-55, except that during the year Kim rents the condominium a total of 14 days. How does Kim report the income and deductions from the property?
-
Lynette, a famous basketball player, is considering the possibility of transferring the sole right to use her name to promote basketball shoes produced and sold by the NIK Corporation. NIK will pay...
-
a. For which persons may a taxpayer deduct medical expenses? b. In the case of children of divorced parents, must the parent who is entitled to the dependency exemption pay the medical expenses of...
-
List three unused (solid) edges from Graph \(O\) that cannot be used to complete the spanning tree. A student has been asked to construct a spanning tree for Graph \(O\), as shown in the figure. The...
-
Determine whether Graph \(Q_{3}\) is a spanning tree of Graph \(Q\). If not, explain how you know. m n
-
How many more edges must be included with the dashed edges to create a spanning tree? A student has been asked to construct a spanning tree for Graph \(O\), as shown in the figure. The dashed lines...
Study smarter with the SolutionInn App