On January 10,2015,Wally Sold an Option for $2,000 on Vacant

question 120

Essay

On January 10,2015,Wally sold an option for $2,000 on vacant land he held as an investment.He had purchased the land in 2011 for $76,000.The option allowed the option holder to purchase the property for $122,000 plus the cost of the option.On March 1,2015,the option holder exercised the option.What is the amount and nature of Wally's gain or loss from disposition of the land?

Understand the concept of voidable preferences in the context of bankruptcy.

Explain the process and principles of debt composition among creditors.

Identify and describe different types of fraudulent transfers.

Grasp the distinctions between secured and unsecured claims in bankruptcy.

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Definitions:

Bullwhip Effect

A phenomenon where small fluctuations in demand at the retail level significantly amplify as they move back through the supply chain towards manufacturers.

Variance of Orders

The statistical measure that represents the variability or spread in the number of orders received over a certain period of time.

Bullwhip Measure

A phenomenon in supply chain management where small changes in demand at the retail level cause increasingly larger changes in demand at the wholesale, distributor, and factory levels.

Demand Variance

The difference between the forecasted and actual demand for products or services, affecting inventory and production planning.