Juan Owned a Small Rental Property, Which Was Condemned by the County

question 74

Multiple Choice

Juan owned a small rental property, which was condemned by the county to expand a local park.His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county.A year later he purchased a similar piece of real estate for $70,000.What is Juan's recognized gain on the involuntary conversion of his rental property?

• A)$5,000
• B)$10,000
• C)$30,000
• D)$35,000

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Definitions:

Symbolic Interactions

A perspective in sociology that interprets social interactions based on the meanings individuals impose on objects, events, and behaviors.

Circular Questioning

A technique used in systemic therapy where questions are asked to understand relationships and interactions among family members by exploring different perspectives.

Cognitive Restructuring

A psychological technique that aims to challenge and change irrational and negative thoughts, beliefs, and attitudes.

Enactment

The process of acting out or expressing thoughts, feelings, or behaviors, often in a therapeutic context to gain insight.