Wade Is a Salesman for a Real Estate Development Company

question 20

True/False

Wade is a salesman for a real estate development company.Because he is the "salesperson of the year," he is permitted to purchase a lot from the developer for $90,000.The fair market value of the lot is $150,000 and the developer's adjusted basis is $100,000.Wade must recognize a gain of $10,000 ($100,000 developer's adjusted basis
- $90,000 cost to Wade), and his adjusted basis for the lot is $100,000 ($90,000 cost + $10,000 recognized gain).

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Definitions:

Crystal Form

The external shape displayed by a crystal or a mineral, determined by the internal arrangement of its atoms or molecules.

Cleavage

1. The tendency of minerals to break along specific orientations of closely spaced planes. 2. The tendency of a rock, especially a metamorphic rock, to split along mostly parallel planes.

Luster

The reflection of light from the surface of a mineral, especially its quality and intensity; the appearance of a mineral in reflected light.

Color

A property of light as seen by people, typically defined by its wavelength or frequency.