Terry Had a Profit in Gross to Take Gravel from Property

question 6

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:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically featuring fixed terms, including interest payments and future repayment of principal.

Preferred Stocks

Shares of stock that have priority over common stock in terms of dividend payments and assets in the event of a liquidation.

Corporate Bonds

Debt securities issued by corporations to finance operations, acquisitions, or other capital requirements, which obligate the issuer to pay interest and repay the principal at maturity.

Accounting Methods

The specific rules and procedures adopted by a business for reporting income and expenses.