Question

Albert purchased a tract of land for $140,000 in 2016 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 2019 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2019? a.$100,000 b.$60,000 c.$40,000 d.$80,000 e.None of these choices are correct.

Answer 1

Answer: e.None of these choices are correct.

Step-by-step explanation:

From the question, we are informed that Albert purchased a tract of land for $140,000 in 2016 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 2019 and the value of the land fell to $100,000.

Albert cannot claim any loss as there was no transaction. We were not told the he sold the land so neither did he gain or make a loss.