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

question 90

Multiple Choice

The building used in Manuel's business was condemned by the city of Mobile.Manuel received a condemnation award of $220,000.He paid $800 in lawyer's fees and $600 for an appraisal of the property.Manuel's adjusted basis in the building was $120,000.Manuel reinvests in similar property costing $200,000,and Manuel makes the proper election regarding the property.Manuel's basis in the new building is

• A)$102,400.
• B)$121,400.
• C)$120,000.
• D)$200,000.

---

Definitions:

Service Level

A measure of the quality of service provided by a business, often evaluated against customer expectations or industry standards.

Single-Period Order Model

A decision-making tool used in inventory management for products with a limited lifespan, focusing on optimizing order quantities for a single selling period.

Christmas Trees

In the context of oil and gas, refers to the assembly of valves, spools, and fittings installed on a wellhead to control the flow of oil or gas from the well.

Inventory Ordering

The process of determining the optimal quantity and timing of orders for products or materials to meet demand while minimizing costs.