Matthew Owns a Ranch

question 14

Multiple Choice

Matthew owns a ranch. He has the right to own and possess that land until his death. When he dies, the ranch will pass to his heirs. Which of the following interests in real property does Matthew have?

• A) easement
• B) future interest
• C) leasehold estate
• D) fee simple absolute

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Definitions:

Uncollectible Account

An account receivable that cannot be collected due to the debtor being unable or unwilling to pay.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, resulting in the distribution of assets to creditors and discharge of debts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may ultimately not be collected.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.