Which, If Any, of the Following Transactions Will Increase a Taxing

question 123

Multiple Choice

Which, if any, of the following transactions will increase a taxing jurisdiction's revenue from the ad valorem tax imposed on real estate?

• A)A resident dies and leaves his farm to his church.
• B)A large property owner issues a conservation easement as to some of her land.
• C)A tax holiday issued 10 years ago has expired.
• D)A bankrupt motel is acquired by the Red Cross and is to be used to provide housing for homeless persons.
• E)None of these.

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Definitions:

Troubled Debt Restructuring

A process where the terms of a debt are modified due to the debtor's financial difficulties to provide relief.

Stated Interest Rate

The interest rate that is agreed upon in the loan document, which does not account for compounding.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Impaired Note

A note receivable that has a reduced likelihood of being collected in full due to deterioration in the financial condition of the borrower.