On July 1, Phoenix Corporation, a Calendar-Year Company, Received a Condemnation

question 69

Multiple Choice

On July 1, Phoenix Corporation, a calendar-year company, received a condemnation award of $150,000 as compensation for the forced sale of a plant located on company property that stood in the path of a new highway. On this date, the plant building had a depreciated cost of $75,000 and the land cost was $25,000. On October 1, Phoenix purchased a parcel of land for a new plant site at a cost of $62,500. Ignoring income taxes, Phoenix should report in its income statement for the year ended December 31 a gain of

• A) $0.
• B) $12,500.
• C) $37,500.
• D) $50,000.

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Definitions:

Lordosis

Increased lumbar curvature.

Lumbar Spine

The lower part of the spine consisting of five vertebrae (L1-L5) that support much of the upper body’s weight and provide flexibility and movement.

Anterior Convex

A description of a curvature or surface that bulges outward toward the front.

Logrolling Technique

A method used in medical and rescue situations to move a patient without flexing the spinal column, by rolling them as a unified whole.