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:

Scientific Psychology

The science-based practice of understanding mental functions, behaviors, and processes through empirical research and experimentation.

Laboratory

A controlled setting where scientists and researchers conduct experiments, tests, and research to gather data, test hypotheses, and develop new products or knowledge.

Cognitive Abilities

Sources of individual differences in performance on cognitive tasks, including factors such as intelligence, memory capacities, attentional focus, knowledge base, strategies, and processing speed.

Plato

An ancient Greek philosopher who made foundational contributions to Western thought, particularly in areas of ethics, politics, and metaphysics.