Albert Purchased a Tract of Land for $140,000 in 2015

question 148

Multiple Choice

Albert purchased a tract of land for $140,000 in 2015 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2018 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2018?

• A) $40,000
• B) $60,000
• C) $80,000
• D) $100,000
• E) None of the above

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Definitions:

Dispatching

Allocating resources and beginning the steps to produce a product.

Manufacturing Operations

The activities involved in the production of goods in a factory, including the machinery, personnel, and processes used.

Customer Contact

Customer contact involves any direct interaction between a company and its customers, aimed at improving service, sales, and customer satisfaction.

Capital Intensive

A business that depends greatly upon equipment and capital for its operations.