Joshua and David Purchased Real Property for $500,000 as Equal

question 72

Essay

Joshua and David purchased real property for $500,000 as equal tenants in common. Although they are listed as equal co-owners, Joshua was only able to provide $200,000 of the purchase price. David treated the additional $100,000 of his contribution to the purchase price as a gift to Joshua. If the property is worth $2.5 million at Joshua's death, what amount would be included in Joshua's estate?

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Definitions:

Iris Diaphragm

A component of optical devices, such as microscopes and cameras, that can adjust the size of the aperture to control the amount of light that passes through the lens.

Oil Immersion

A technique used in microscopy where an oil with a refractive index close to that of glass is placed between the specimen and the objective lens to increase resolution.

Coverslip

A very thin piece of glass or plastic used to cover specimens on a microscope slide for examination.

Opaque

Describing a material or substance that does not allow light to pass through; not transparent or translucent.