If the Grantor of Land Orders That the Land Will

question 49

Multiple Choice

If the grantor of land orders that the land will go to a third party (i.e., not the grantor or grantee/life tenant) after the life estate is over, then the property received by the third party is known as the _____.

• A) adverse possession
• B) remainder interest
• C) estate for years
• D) reversion

---

Definitions:

Gross Method

An accounting approach for recording purchases or sales of inventory where discounts are not taken into account until they are actually realized.

Forward Contract

An individualized contract between two counterparts to acquire or dispose of an asset at a fixed price on a specified future date.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) aimed at making global financial statements more comparable.

Hedge Transactions

A financial strategy used to minimize the risk of adverse price movements in an asset, often involving derivatives like futures or options contracts.