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:

Piagetian

Relating to the developmental theories of Jean Piaget, focusing on how children's cognition develops in stages.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, influencing the probability of that behavior being repeated.

Tongue Out

A gesture where the tongue is stuck out of the mouth, which can be an expression of concentration, defiance, or playfulness.

Unaffected

Not influenced, changed, or damaged by a particular event or situation.