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:

X-intercept

The point at which a line crosses the x-axis on a graph, indicating where the value of the function is zero.

Y-intercept

The point where a graph intersects the y-axis, representing the value of the dependent variable when all independent variables are zero.

X-intercept

The point where a curve intersects the x-axis on a graph, indicating where the function has a value of zero.

Y-intercept

The point where a line or curve intersects the y-axis of a graph.