James Had $80 000 in the Bank

question 1

Multiple Choice

James had $80 000 in the bank. He used some of this cash to buy a new car for $67 000 on 1 January. James subsequently modified the car and sold it for $78 000 on 1 March. The modifications cost James $10 000, and he paid a total of $250 to advertise the car for sale. James' wealth after the sale of the car was:

• A) $80 000.
• B) $80 750.
• C) $148 000.
• D) $158 000.

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Definitions:

Fee Simple

The most complete ownership of land possible, with unlimited duration and inheritable.

Crown Patent

A legal document that grants land ownership rights in Commonwealth countries, issued by the government.

Fixture

A chattel that is constructively or permanently attached to land.

Utility

A service provided by a company or public entity, such as electricity, water, or telecommunications, regarded as essential for daily living.