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.

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Definitions:

Expenditures

Refers to the act of spending or using up resources, often relating to money spent on goods, services, or operations.

Short Words

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Communication

Communication involves the exchange of information, ideas, or messages between individuals through various channels and mediums.

Cliché

An overused expression or idea that has lost its originality and impact.