Which of the Following Is True About the Situation Where

question 105

Multiple Choice

Which of the following is true about the situation where a party who owns a fee simple absolute conveys a life estate,but does not convey any other interest?

• A) Upon the death of the holder of the life estate,the property will go to the heirs of the holder of the life estate.
• B) The grantor has created a remainder,even though the identity of the holder of the remainder is not yet known.
• C) The grantor holds a fee simple defeasible.
• D) The grantor holds a reversion.
• E) The conveyance is invalid because it is incomplete.

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Definitions:

Projected Taxable Income

An estimate of an entity's income for a fiscal period that is subject to income tax.

CCPC

Canadian-Controlled Private Corporation; a designation in Canada for privately owned companies that meet certain criteria for tax purposes.

Net Operating Profit After Taxes (NOPAT)

A measure of an organization's operational efficiency, representing its earnings before interest and taxes minus taxes.

EBIT

Earnings Before Interest and Taxes (EBIT) measures a company's operational profitability by excluding interest and taxes from its net income.