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:

Overload

A situation in which an individual or system is burdened with more work or information than it can handle, leading to potential stress or breakdown.

Poach Talent

The practice of directly attracting and hiring employees from competing firms, often considered unethical due to potential conflicts of interest.

Job Benefits

Non-wage compensations provided to employees in addition to their normal wages or salaries, such as health insurance, paid vacation, and retirement plans.