The Bank Forecloses on Lisa's Apartment Complex

question 41

Multiple Choice

The bank forecloses on Lisa's apartment complex. The property had been pledged as security on a nonrecourse mortgage, whose principal amount at the date of foreclosure is $750,000. The adjusted basis of the property is $480,000, and the fair market value is $750,000. What is Lisa's recognized gain or loss?

• A) $270,000
• B) ($750,000)
• C) $0
• D) ($480,000)
• E) None of the above

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Definitions:

Collectivist Cultures

Cultures that prioritize the needs and goals of the group over individual desires or ambitions.

Monozygotic Twin Pairs

Twins that are genetically identical because they were conceived from the same sperm and egg, and thus share all of their genes.

Aggressiveness

A behavior characterized by hostility or violence, oftentimes with the intention to dominate or intimidate.

Subcultures of Violence

Groups within a larger society that hold values and norms endorsing the use of violence as a means to resolve disputes or achieve status.