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:

Delusional Disorder

A psychiatric condition characterized by the presence of delusions, which are fixed beliefs that conflict with reality but remain despite evidence to the contrary.

Extreme Jealousy

An intense and often irrational emotion, typically concerning a fear of loss or betrayal in a personal relationship.

No Basis In Fact

A statement or belief that lacks any factual support or evidence.

Biological Relatives

Family members related by blood, such as parents, siblings, and offspring, as opposed to those related by law or marriage.