The Building Used in Tim's Business Was Condemned by the City

question 852

Multiple Choice

The building used in Tim's business was condemned by the city of Lafayette. Tim received a condemnation award of $125,000. He paid $1,200 in lawyer's fees and $800 for an appraisal of the property. Tim's adjusted basis in the building was $60,000. Tim reinvests in similar property costing $110,000, and Tim makes the proper election regarding the property. What is the amount of Tim's realized (not recognized) gain on the condemnation?

• A) $63,000
• B) $50,000
• C) $0
• D) $65,000

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Definitions:

Denial Messages

Refers to communications that inform recipients about what cannot be done or why a request is rejected, often aiming to maintain a positive relationship.

Proper Tone

The use of language and style in communication that is appropriate for the audience and purpose, reflecting respect and professionalism.

Cash Refunds

A return of money to a purchaser following the return of an item or dissatisfaction with a service provided.

You Statements

Phrases that directly address the listener or reader, potentially creating a sense of personalization or confrontation.