Fact Pattern 24-2

question 10

Multiple Choice

Fact Pattern 24-2
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 24-2. Other property Mary may own that may be ex?empt from satisfaction of judgment debts includes

• A) any property that Mary wishes to exempt.
• B) investments that Mary has made in her family's businesses.
• C) recreational vehicles that Mary uses on weekends.
• D) tools that Mary uses in her trade.

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Definitions:

Property Rights

The legal rights to own, use, and dispose of land, buildings, or goods, protected under law.

Economic Profit

The disparity between a company's complete earnings and its aggregate expenses, covering both direct (explicit) and indirect (implicit) costs.

Human Capital

The collective skills, knowledge, and experiences possessed by an individual or population, viewed in terms of their value to an organization or society.

Physical Capital

Physical capital includes tangible assets such as buildings, machinery, and equipment that are used in the production of goods and services.