Brady Acquired a Block of Land in Fee Simple Under

question 43

True/False

Brady acquired a block of land in fee simple under a Crown Patent. He divided the block into two parcels: Whiteacre and Blackacre. He kept Whiteacre, but granted Blackacre to Drucker for life, then to Evans. Brady died possessed of Whiteacre, leaving the land to Crader. Brady, as the holder of Blackacre in fee simple was entitled to grant a life estate to Drucker.

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Definitions:

Financial Statement

A proper journal that captures the flow of financial transactions and the economic positioning of an entity, whether a business, an individual, or another type.

Normal Balance

The side of an account (debit or credit) that increases its value; for example, assets and expenses have normal debit balances, while liabilities and revenues have credit balances.

Permanent/Temporary

Describes accounts or records in accounting that either carry their balances over across accounting periods (permanent) or are closed and zeroed out at the end of each period (temporary).

Account Category

A classification of accounts that organizes financial transactions within a ledger or financial statement.