Joan and Mary decide to build an addition to their home and the local supply company just delivered a load of lumber and placed it in their front yard. At this point, the lumber is considered:

• A fixture
• Chattel
• An emblement
• Real property, because it is about to become part of their home

2

Stan is the owner of an apartment building and asks his agent Arlene to show an apartment to a possible tenant. Arlene goes ahead and negotiates a lease even though Stan didnt give her written authority to do so. The tenant assumes Arlene has the authority and thus what sort of agency has been created?

• An express agency
• An implied agency
• An ostensible agency
• An agency by estoppel

3 Sam and Leona bought their vacation home in Cape May for $200,000. They have invested $23,800 in property improvements over the past few months and they have owned the property for two of the past five years. When they sell the property for $596,600, after incurring closing costs of $20,100, what would their capital gains tax exemption be?

• $500,000
• $0
• $250,000
• $152,700