Albert Purchased a Tract of Land for $140,000 in 2016

question 32

Multiple Choice

Albert purchased a tract of land for $140,000 in 2016 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000.Highway engineers surveyed the property and indicated that he would probably get $180,000.The highway project was abandoned in 2019 and the value of the land fell to $100,000.What is the amount of loss Albert can claim in 2019?

• A)$40,000
• B)$60,000
• C)$80,000
• D)$100,000
• E)None of these.

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Definitions:

Controlling

The management function concerned with monitoring performance, comparing it with goals and standards, and taking corrective action as needed.

Means-Ends

A problem-solving technique that involves identifying the desired outcome (end) and finding the most efficient means to reach that outcome.

Subgroups

Smaller groups formed within a larger group, based on shared interests or characteristics.

Adequate Financing

Having sufficient funds or capital to cover the startup, operation, or expansion of a business.