Matthew, Mark, Luke, and John Are Four Brothers

question 64

Multiple Choice

Matthew, Mark, Luke, and John are four brothers. They equally share ownership of a piece of land. Each brother holds an undivided quarter interest. The first three brothers inherited their interests in the land from their father. John acquired his interest by buying it from his sister, Mary. Which of the following statements is necessarily TRUE?

• A) If Mark earns $8000 in profits by selling wheat that was grown on the land, Mark, Luke, and John are legally entitled to share in that money.
• B) If John dies first, his interest must automatically pass to Matthew, Mark, and Luke.
• C) Matthew may be a joint tenant with respect to Mark, but a co- tenant with respect to John.
• D) Each brother is entitled by law to exclusive possession of one quarter of the entire property.
• E) All four brothers are joint tenants.

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Definitions:

Straight-line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable duration.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.