Terry Had a Profit in Gross to Take Gravel from Property

question 2

Multiple Choice

Terry had a profit in gross to take gravel from property owned by Fallasha.Terry sold the profit to Mike, Dale and Linda, each of whom owns their own independent gravel
Company.Which of the following bests describes this situation:

• A)The profit in gross is not alienable.
• B)The profit in gross is alienable but not apportionable.
• C)The profit in gross is alienable and apportionable.
• D)The profit in question is really a profit appurtenant.

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Definitions:

Voting Shares

Shares of a corporation's stock that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Acquisition

The process by which one company takes control of another company by purchasing or exchanging equity.

Contingency Payment

A payment that depends on the occurrence of a specific condition or set of conditions in the future.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the time value of money and risk.