Ted Purchases Some Forest Land in 2012 with the Intention

question 4

Multiple Choice

Ted purchases some forest land in 2012 with the intention of building a log cabin to use as a vacation home. To obtain the land, Ted pays $10,000 cash, assumes the seller's $19,000 mortgage on the land and pays $3,000 in commissions and legal fees related to the purchase. In 2013, Ted pays a contractor $4,000 to bulldoze and level the site of the log cabin. In 2014, Ted has a well dug and water and sewer lines laid in the ground at a cost of $6,000. Ted paid $2,000 of property taxes in 2012 and $5,000 of property taxes in 2013 and 2014 on the land. What is Ted's basis in the land at the end of 2014?

• A) $54,000
• B) $42,000
• C) $38,000
• D) $36,000
• E) $32,000

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Definitions:

Consideration

In leadership, refers to the degree to which a leader shows concern and respect for followers, contributing to a supportive environment.

Turnover Rates

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and organizational health.

Grievances

Formal complaints or disputes, often from employees towards an employer, regarding conditions of employment or dissatisfaction with treatment.

Absenteeism

The habitual non-presence of an employee at their job, often without good reason.