An Owner of Land May Involuntarily and Unknowingly Give Up

question 19

Multiple Choice

An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new owner without a deed and without the consent or knowledge of the original owner, this is said to be conveyed by:

• A) Prescription
• B) Adverse possession
• C) Accretion
• D) Reliction

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Definitions:

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is issued at less than its face value.

Equity Method

A method where an investment is initially recorded at cost and subsequently adjusted for the investor's proportionate share in the net assets of the investee, recognizing income or loss.

Intercompany Sale

Transactions that occur between two divisions or subsidiaries within the same parent company, often for the purpose of transferring goods or services.

Pre-tax Gain

Income generated before any taxes have been applied.