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

question 41

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) $120,000.
• C) $200,000.
• D) $121,400.

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Definitions:

Major Affective Disorder

A category of mood disorders characterized by significant emotional disturbances, which can include either periods of intense sadness (depression) or excessive happiness (mania).

Anorexia Nervosa

A psychiatric disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe restriction of food intake and weight loss.

Bulimia

An eating disorder characterized by episodes of binge eating followed by behaviors to avoid weight gain, such as self-induced vomiting, excessive exercise, or the use of laxatives.

Hyperinsulinemia

A condition characterized by an excessive level of insulin in the blood, often associated with type 2 diabetes and obesity.