Monterey Developers Purchases 10 Acres of Land for $15,000 on January

question 81

Multiple Choice

Monterey Developers purchases 10 acres of land for $15,000 on January 14,2013.They also pay $2,000 in legal and other fees related to the purchase.Monterey spends $3,000 for legal fees,permit licenses,and city franchise fees to subdivide the land into 10 one-acre plots.Sewer and utility line easements cost an additional $5,000.Interest paid on the loan that financed the purchase is $1,200 for 2013.Monterey also pays $800 in property taxes in 2013.What is Monterey's adjusted basis in the land at the end of 2013?

• A)$17,000
• B)$25,000
• C)$25,800
• D)$26,200
• E)$27,000

---

Definitions:

Hallucination

A sensory experience of something that does not exist outside the mind, often seen, heard, or felt.

Anxiety Reaction

An emotional and physiological response to stress characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

Obsession

An intrusive and persistent thought, urge, or image that repeatedly enters the mind, often causing distress.

Manic Episode

A period of abnormally elevated or irritable mood, increased energy, and other specific symptoms that significantly impact functioning, associated with bipolar disorder.