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:

Poverty Rate

The proportion of a population living below the national poverty line, indicating the level of poverty in a country.

Billion

A numerical value representing one thousand million (1,000,000,000) in the American short scale system, commonly used in counting currency and population.

Million

A numerical value representing one thousand thousands, or 1,000,000.

Extreme Poverty

A condition characterized by severe deprivation of basic human needs, often measured by the World Bank as living on less than $1.90 a day.