In Early 2013,Wanda Paid $33,000 for an Option on a Parcel

question 70

Essay

In early 2013,Wanda paid $33,000 for an option on a parcel of land she intended to hold as an investment.After a survey of the land (paid for by the grantor)determined that the parcel was much smaller than the grantor said it was,she let the option lapse when it expired in 2014 after 14 months.How should Wanda treat these events in 2013? 2014?

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Definitions:

Starting Immediately

Indicates that an action or process is to begin right away, without delay.

Perpetuity

A type of financial asset that generates a never-ending stream of cash flows or payments with no expiration date.

Equal Payments

Regularly scheduled payments of the same amount, often used in loans and amortization schedules.

Equal Intervals

Equal intervals refer to divisions or measurements in data that have the same length or duration between them, commonly used in statistical analysis and research.