Cher Sold Undeveloped Land That Originally Cost $150,000 for $225,000

question 27

True/False

Cher sold undeveloped land that originally cost $150,000 for $225,000. There is a positive AMT adjustment of
$75,000 associated with the sale of the land.

---

Definitions:

Licensing Statute

Legislation that specifies the requirements and conditions for obtaining a professional or business license to legally operate.

Illegal And Unenforceable

Describes contracts that cannot be legally upheld or enforced due to the inclusion of illegal acts or elements.

Usury

The lending of money at an exorbitant or unlawful rate of interest.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.