Which of the Following Events Causes the Purchaser of an Option

question 14

Multiple Choice

Which of the following events causes the purchaser of an option to add the cost of the option to the basis of the property to which the option relates?

• A) The option is exercised.
• B) The option is sold.
• C) The option lapses.
• D) The option is rescinded.
• E) None of the above.

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Definitions:

Karst Topography

A landscape formed from the dissolution of soluble rocks such as limestone, characterized by sinkholes, caves, and underground streams.

Limestone Pillars

Natural columns made of limestone, often formed in karst landscapes through the process of dissolution.

Sinkholes

Depressions or holes in the ground caused by the collapse of a surface layer, often resulting from the dissolution of limestone beneath.

Saltwater Intrusion

The movement of saline water into freshwater aquifers, which can occur due to groundwater extraction or changes in sea level, often leading to the contamination of drinking water sources.