On January 2, 1980, A and B entered into a contract whereby A sold to Ba parcel of land for P10,000 with the right to repurchase. Since they were friends, no period was agreed upon for the repurchase of the property. a. Until when must A exercise his right of repurchase? b. If A fails to redeem the property within the allowable period, what would you advise B to do for his better protection?
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- Greenwood rented office space to Evergreen forfive years witl1 an option for renewal of three orfive years. In the second year of the lease,Greenwood informed Evergreen that it couldnot comply with its obligations under the leasebeyond the end of the current year; Greenwoodplanned to demolish the building and erect a21-storey office tower. Greenwood offeredEvergreen preferential treatment in the newbuilding when it was completed. Evergreenrefused to move, claiming that the currentbuilding had ardlltectural value and should bepreserved. The lease did not include clausesdealing with demolition or the landlord's rightto resume possession during the term of thelease.57 How does thls situation illustrate rightsof ownership and landlord- tenant relations?How could the dispute be resolved?Discjsss what is the scope of liability of the indemnifier in a contract of indemnity?17. Elizabeth Ellis sells a business asset for $10,000. Assume that Elizabeth has owned the asset for several years; that the original cost was $6,000; and that Elizabeth has claimed no depreciation deduction during the period of ownership and use. Assume that Elizabeth would have deducted $2,000 if she had claimed depreciation. Assume also that Elizabeth will not file amended returns to correct any prior year returns. How should Elizabeth report the sale? Ignore any potential depreciation recapture. Gain of $6,000 and expense of sale deduction for AGI of $2,000 Gain of $6,000 and a deduction from AGI of $2,000 Gain of $4,000 Gain of $4,000 and itemized deduction of $2,000 A B D None of the above
- John purchased his family home for $50,000 in 1984 on first migrating to Australia. John lived in and used the property as his main residence until he passed away in 2020 when the property was worth $250,000. In his Will, John left the family home to his daughter Mary who received the property after Probate was granted at the start of 2022, when the property was worth $275,000 Too emotional for keeping the property, Mary sold the house at auction in June 2022 for $280,000. Ignoring any capital losses (of which Mary has none), what is the amount of any net capital gain made by Mary on the sale of her inherited house? $5,000 $15,000 $30,000 $165,000 $230,000The Jones company lists raw land for lease with broker Mary. After extensive advertising Mary Presents two offers to the Jones Company. One offer is from an oil company who wishes to extract oil below the land surface and the second is from a farmer who wishes to graze cattle. Both are without contingencies. The most profitable recommendation that broker Mary can make to the Jones Company is that they: A. accept both offers, since separate entities can enter into separate leases. B. accept neither offer and continue to market the property for a better user. C. accept the farmers lease offer since the oil company will be disruptive to the land. D. accept the oil company mineral rights lease offer since they are very financially stable.5 in order for a conditional receipt to be issued, the applicant must A take a medical examination B sign the application and pay the initial premium C name a beneficiary D elect a settlement option
- 1.An entity shall offset an asset relating to one plan against a liability relating to another plan when, and only when, the entity: has a legally enforceable right to use a surplus in one plan to settle obligations under the other plan intends either to settle the obligations on a net basis, or to realize the surplus in one plan and settle its obligation under the other plan simultaneously Neither. Both 1 and 2. 1 only. 2 only.In early 2020, James, Inc. announced its intention to construct a manufacturing facility in the Shenandoah Valley. To persuade James, Inc. to locate the facility in Burton County, the county government contributed a six-acre tract of undeveloped county land to the corporation. The appraised FMV of the land at the date of the contribution was $280,000. Soon after accepting the contribution, James, Inc. paid $3,300 to an attorney to do a title search to make sure that it had uncontested ownership of the land. James also paid $12,900 for a survey and site map of the six acres and $1,360 for two water wells drilled on the land. Did James recognize income because of the receipt of the land? What is the proper tax treatment of James’ $17,560 expenditure with respect to the land? In 2021, James’s attorney discovered that the estate of Elsa Reynolds claimed title to the six acres and was preparing to file suit in Virginia state court to regain ownership and possession. The attorney advised…CARLA sold her cow to IZA forP40,000.00. No date or conditionwas stipulated for the delivery ofthe cow. While still in possessionof CARLA, the cow gave birth totwo (2) calves. Who has the rightto the 2 calves? Explain
- Certain obligations exist with Life Estates in Effect: a) Owner does not possess the property, has no rights to rent the property, does not maintain the property, responsible for none of the costs and expenses, and you hold possession as long as you live. If you die, the estate reverts back to me as an 'estate in remainder. b) Owner does possess the property, has rights to rent the property, does maintain the property, is responsible for the costs and expenses, and you hold possession as long as you live. If you die, the estate reverts back to me as an 'estate in remainder'. c) Owner does not possess the property, has rights to rent the property, does not maintain the property, responsible for none of the costs and expenses, and you hold possession as long as you live. If you die, the estate reverts back to me as an 'estate in remainder'. d) Owner does not possess the property, has no rights to rent the property, does not maintain the property, responsible for none of the costs and…Toby's Doggie Hotel enters into a contract with ABC Marketing to purchase 100 orange frisbees for $300.00. Toby's Doggie Hotel repudiates the contract and ABC later resells the frisbees to someone else for $250.00. a. ABC is not entitled to recover from Toby's Doggie Hotel b. ABC is entitled to recover $50.00 from Toby's Doggie Hotel c. ABC is entitled to recover $250.00 from Toby's Doggie Hotel d. ABC is entitled to recover $300.00 from Toby's Doggie HotelJP received an amount ofP100,000.00 from RT, payable on orbefore November 15, 2021. It isstipulated in their contract that incase no payment is received onNovember 15, 2021, JP will act asthe courier of plants in the liveselling business of RT until his loanis paid. However, despite demandfrom RT when the obilgationbecomes due, JP refused & stillrefuses to act as courier in theplants live sellinsiness of RT.