51. Albert purchased a tract of land for $140,000 in 2011 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 2014 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2014?
A) $40,000
B) $60,000
C) $80,000
D) $100,000
E) None of these

Question

51.	Albert purchased a tract of land for $140,000 in 2011 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 2014 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2014?
A)	$40,000
B)	$60,000
C)	$80,000
D)	$100,000
E)	None of these

Quizplus · Accepted Answer

Neither gain nor loss is recognized by Albert associated with the perceived fluctuations in the value of the land.The requisite identifiable event (i.e. ,sale or other disposition)has not occurred.

51 Albert Purchased a Tract of Land for $140,000 in 2011