Bennett Purchased a Tract of Land for $20,000 in 2004

question 5

Multiple Choice

Bennett purchased a tract of land for $20,000 in 2004 when he heard that a new highway was going to be constructed through the property and the land would soon be worth $200,000.The highway project was abandoned in 2013 and the value of the land fell to $15,000.Bennett can claim a loss in 2013 of:

• A)$0
• B)$5,000
• C)$165,000
• D)$180,000
• E)None of the above

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Definitions:

Automatic Functions

Bodily processes or actions that occur without conscious thought, such as breathing, heart rate, and digestion.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.

Base of the Skull

The inferior portion of the skull upon which the brain rests, consisting of several bones that include the occipital, sphenoid, and parts of the temporal bones.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, transmitting neural signals between the brain and the body.