A Strip Along the Boundary of Joy's Land Is Condemned

question 17

Multiple Choice

A strip along the boundary of Joy's land is condemned for a utility easement. She receives a payment of $7,500 from the utility company. Her basis in the land is $80,000. Which of the following is correct?

• A) Joy must include the $7,500 in gross income.
• B) Joy must reduce the basis of the land by $7,500.
• C) Joy must include the $7,500 in the gross income and increase the basis of the land by $7,500.
• D) Only a. and c. are correct.
• E) a., b., and c. are correct.

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Definitions:

Free Association

A psychoanalytic technique in which patients express their thoughts freely, letting their ideas flow without censorship.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-patient relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments people make as a result of their overall situation.

Fritz Perls

A psychiatrist and psychotherapist known for developing Gestalt therapy, a form of psychotherapy that emphasizes personal responsibility and living in the present moment.

Psychoanalysis Therapy

A therapeutic approach developed by Sigmund Freud that seeks to explore unconscious conflicts and desires that are believed to influence behavior.