Juan Owned a Small Rental Property, Which Was Condemned by the County

question 47

Multiple Choice

Juan owned a small rental property, which was condemned by the county to expand a local park.His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county.A year later he purchased a similar piece of real estate for $70,000.What is Juan's basis in the replacement property?

• A)$40,000
• B)$45,000
• C)$50,000
• D)$70,000

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Definitions:

Inflated Sense

An exaggerated or overly high perception of oneself, often without sufficient reason or evidence.

Static Traits

Personality characteristics or attributes that are stable over time and across various situations.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Constitutional Traits

Characteristics and qualities that are believed to be biologically determined, such as certain behavioral tendencies or physical features.