Question
Pablo is a struggling artist barely able to buy food. He owes 3 months back rent on his apartment which also doubles as his painting
Pablo is a struggling artist barely able to buy food. He owes 3 months back rent on his apartment which also doubles as his painting studio. Albert owns the apartment building where Pablo lives and has come to collect the back rent and the current month rent. Pablo hides in the bathroom hoping that Albert will go away like usual. However, Albert decides to enter the apartment and see if Pablo is hiding somewhere inside. Once he finds Pablo in the bathroom, Albert demands all of his rent totaling $3,500. Pablo tells Albert he has no money but would Albert accept one of his paintings as full payment instead of cash? Albert says no, but he will give Pablo one more month to come up with all of the rent money. Pablo is so relieved that he insists that Albert take one of his more recent paintings home with him. Albert does not really like Pablos strange paintings but figures his wife might like it, so he accepts the painting and goes home for the day. Once he gets there, his wife, Yolanda, sees the painting and asks where is the cash for the rent? Albert explains what he did for Pablo which makes Yolanda furious and she smashes the painting on Alberts head giving him a concussion and breaking the frame into pieces. Inside the frame are 100 gold coins that no one seemed to know about. After Albert regains his senses, he and Yolanda pick up the gold coins and go to the local pawn shop where the owner gives them $3,500 in exchange for the coins. What will be Alberts basis in the coins and the painting before receipt of the money from the pawn shop?
Group of answer choices
3,500 and $0
0 and $3,500
3,500 and $3,500
0 and $0
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