QUESTION 6

Shelton Engines has built a new model of engines that can withstand more heat than the competing engines in its class. Lokin Inc., a sports car manufacturer, ________ the equipment from Shelton Engines for $1,000,000. Shelton Engines transfers title to the engine to Lokin. Lokin is now the owner of the equipment.

a) produces

b) purchases

c) captures

d) leases

QUESTION 7

Which of the following is true of a bailment?

a) Only personal property can be used in a bailment.

b) Intangible property cannot be used in a bailment.

c) All bailments must be expressed in writing to be effective.

d) Only physical deliveries can become a bailment.

QUESTION 8

In the context of a tax sale, many states provide a period of ________ after a tax sale during which the taxpayer can reclaim the property by paying the unpaid taxes and penalties.

a) stipulation

b) consideration

c) redemption

d) exemption

QUESTION 9

Jonas, a successful investment banker earning $400,000 per year, marries Penny, a nurse at a county hospital. While Jonas owns $1 million of real estate and $1.5 million in securities, Penny has no personal savings or property. After four years, they opt for a divorce. Over the four years of their marriage, Jonas has made $400,000 for the first two years and $500,000 for the remaining two. Penny has made $25,000 in the first three years, and $150,000 in the final year of their marriage. Their living expenses have been $130,000 per year, and they have $1,450,000 saved in a bank account. During the marriage, Jonas's real estate has increased in value to $1.5 million, and securities to $3 million.

If they filed for divorce in a state that recognizes community property, what would be the separate property owned by Jonas at the end of their marriage?

a) $2.5 million of real estate and $2 million securities

b) $1 million of real estate and $1.5 million in securities

c) $1.5 million of real estate and $3 million in securities

d) $500,000 of real estate and $2.5 million in securities