Which of the Following Statements About an Investment in Undeveloped

question 60

Multiple Choice

Which of the following statements about an investment in undeveloped land is false?

• A) An investor can elect to capitalize interest expense on a mortgage incurred to purchase the undeveloped land.
• B) An investor can elect to capitalize property taxes on undeveloped land.
• C) An investment in undeveloped land is considered a liquid asset.
• D) Gain recognized on the sale of undeveloped land held as an investment is capital gain.

---

Definitions:

Hilgard

Ernest R. Hilgard was a prominent psychologist known for his research on hypnosis and pain control.

Psychoactive Drugs

Substances that affect the mind, mood, or behavior by altering the chemical processes in the brain.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing restorative sleep, leading to daytime impairment.

Barbiturate

A class of drugs derived from barbituric acid, acting as a central nervous system depressant, used for sedation, anesthesia, or to treat seizures.