A Landlord Leases Property Upon Which the Tenant Makes Improvements

question 3

Multiple Choice

A landlord leases property upon which the tenant makes improvements. The improvements are significant and are not made in lieu of rent. At the end of the lease, the value of the improvements is not income to the landlord. This rule is an example of:

• A) The wherewithal to pay concept.
• B) The tax benefit rule.
• C) The arm's length concept.
• D) A clear reflection of income result.
• E) None of these.

---

Definitions:

3 Months

A time period equivalent to roughly 12 weeks or about 90 days, often used to measure the early stages of development and change.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Attend

The act of being present at an event or location, such as a meeting or school, often implies participation or engagement in activities.