Albert Purchased a Tract of Land for $140,000 in 2013

question 95

Multiple Choice

Albert purchased a tract of land for $140,000 in 2013 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000.Highway engineers surveyed the property and indicated that he would probably get $180,000.The highway project was abandoned in 2016 and the value of the land fell to $100,000.What is the amount of loss Albert can claim in 2016?

• A)$40,000
• B)$60,000
• C)$80,000
• D)$100,000
• E)None of the above

Recognize the accounting treatment for subscriptions and the revenue recognition principle.

Understand the categorization and implications of employer payroll taxes and liabilities.

Ability to identify and prepare necessary adjusting entries for accrual accounting purposes.

Understand the calculation and accounting treatment of payroll tax expenses.

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Definitions:

Reasonable Doubt

A standard in criminal law that requires the prosecution to prove the defendant's guilt to such an extent that a reasonable person would have no doubt regarding the defendant's guilt.

Actus Reus

Latin for “guilty act”; a wrongful behavior that is associated with the physical act of a declared crime.

Wrongful Behavior

Actions or conduct that are illegal or morally unacceptable, often leading to legal consequences or social disapproval.

Liability

A legal responsibility or obligation, typically involving financial restitution.