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

question 52

Multiple Choice

The building used in Terry's business was condemned by the city of St.Louis.Terry received a condemnation award of $125,000.He paid $1,200 in lawyer's fees and $800 for an appraisal of the property.Terry's adjusted basis in the building was $60,000.Terry reinvests in similar property costing $110,000,and Terry makes the proper election regarding the property.What is the amount of Terry's recognized gain on the condemnation?

• A)$15,000
• B)$13,000
• C)$50,000
• D)$63,000

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Definitions:

Dehydration

A state that occurs when there is a significant reduction in body water, affecting normal physiological operations.

Electrolyte Imbalances

Electrolyte imbalances occur when the levels of electrolytes in your body are either too high or too low, affecting various bodily functions.

Rheumatic Fever

An inflammatory disease that can develop as a complication of untreated or poorly treated strep throat or scarlet fever.

Nephritis

Inflammation of the kidneys, which can alter their function and cause varying degrees of illness.