The Building Used in Tim's Business Was Condemned by the City

question 33

Multiple Choice

The building used in Tim's business was condemned by the city of Lafayette.Tim received a condemnation award of $125,000.He paid $1,200 in lawyer's fees and $800 for an appraisal of the property.Tim's adjusted basis in the building was $60,000.Tim reinvests in similar property costing $110,000,and Tim makes the proper election regarding the property.What is the amount of Tim's realized (not recognized) gain on the condemnation?

• A)$0
• B)$50,000
• C)$63,000
• D)$65,000

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Definitions:

Sentence Length

The measurement of a sentence determined by the number of words it contains, influencing the readability and tone of a text.

Business Audiences

Groups of people in a professional setting who receive, assess, and respond to business communications.

Faulty Parallelisms

Errors in sentence structure where parts of a sentence are not grammatically consistent or balanced.

Independent Clause

A group of words that contains a subject and a verb and can stand alone as a complete sentence.