Havana Pérez Purchased a Piece of Land in 2019 with Plans

question 10

Multiple Choice

Havana Pérez purchased a piece of land in 2019 with plans to build and operate a greenhouse and evergreen nursery.Havana is a full-time teacher but has always dreamed of running a business.It is now 2020 and Havana has not yet started a business, and upon receiving an offer to teach on a tropical island, has decided to sell the land.Which of the following statements is TRUE?

• A)Havana's primary intent suggests that the income should be treated as a business transaction.
• B)Havana purchased the land with the primary intent to resell it at a profit.
• C)Havana purchased the land with the primary intent to recognize a long-term economic benefit.
• D)The intent of the purchase is insignificant when determining the type of taxable income to report.

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Definitions:

Mammography Screenings

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Breast Cancer

A malignancy that develops in the breast tissue, characterized by uncontrolled cell growth that can spread beyond the breast.

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The psychological and behavioral strategies individuals use to manage stress, hardships, or trauma.

Stress

A psychological and physical response to a demand or threat, which can affect mental and physical health.