Nat Is a Salesman for a Real Estate Developer

question 8

Multiple Choice

Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot?
Recognized gain Basis

• A) $0 $ 75,000
• B) $0 $ 90,000
• C) $15,000 $ 75,000
• D) $15,000 $ 90,000
• E) $30,000 $105,000

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Definitions:

Measurement Errors

The difference between a measured value and the true or accepted value, arising from limitations in the measurement process.

Strong Situation

A situation that elicits similar behaviors from most people, minimizing individual differences in response.

Court Hearing

A session held before a judge or magistrate in which the legal issues or facts of a case are presented and determined.

Psychodynamic Theory

A psychological perspective that emphasizes the systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experiences.