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

question 47

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 basis in the replacement property?

• A)$40,000
• B)$45,000
• C)$50,000
• D)$70,000

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Definitions:

Dams and Highways

Large-scale infrastructure projects that include the construction of barriers across rivers to store water and the building of routes for vehicular traffic across land respectively.

Income of Farmers

Refers to the earnings received by those engaged in agricultural production, reflecting their economic viability and sustainability.

1933-1940

The period marked by global economic struggles, the rise of fascism in Europe, and the lead-up to World War II.

Declined Further

An expression denoting continued deterioration or decrease in quantity, quality, or strength.