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

question 1789

Multiple Choice

The building used in Terry's business was condemned by the city of St. Louis. Terry received a condemnation award of $125,000. He paid $1,200 in lawyer's fees and $800 for an appraisal of the property. Terry's adjusted basis in the building was $60,000. Terry reinvests in similar property costing $110,000, and Terry makes the proper election regarding the property. What is the amount of Terry's recognized gain on the condemnation?

• A) $15,000
• B) $63,000
• C) $50,000
• D) $13,000

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Definitions:

Concrete Level

Describes a stage of analysis or understanding that deals with tangible, definite, and specific instances as opposed to abstract or theoretical concepts.

Abstract Level

a degree of thinking that involves complex, non-concrete concepts that do not rely on sensory experience for understanding.

Sociological Research

The systematic study of social phenomena and human behavior, often employing empirical methods to gather data and test hypotheses.

Ethical Considerations

Factors related to moral principles and values that influence decision-making processes and actions.