In Early 2018, Wanda Paid $33,000 for an Option on a Parcel

question 39

Essay

In early 2018, Wanda paid $33,000 for an option on a parcel of land she intended to hold as an investment.After a survey of the land (paid for by the grantor) determined that the parcel was much smaller than the grantor said it was, she let the option lapse when it expired in 2019 after 14 months.How should Wanda treat these events in 2018? 2019?

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Definitions:

Regulatory Policies

Rules or guidelines issued by governmental agencies to control or direct economic or social activities.

Negative Externalities

Economic activities that impose a cost on third parties who are not directly involved in the activity, such as pollution.

Noise-Control Regulations

Laws or policies implemented to limit the amount of noise pollution in an environment, aiming to protect public health and well-being.

Sawmill

A facility where logs are cut into lumber by machine, converting raw timber into boards and other forms of wood usable for construction.