Carrie Owns a Business Building with an Adjusted Basis of $95,000

question 22

Multiple Choice

Carrie owns a business building with an adjusted basis of $95,000 and an appraised fair market value of $98,000. The city of Millerville condemns the property for a new highway. The condemnation award is $98,000. Carrie invests $90,000 of the proceeds into a new building on the other side of the city. What is the gain or loss that Carrie must recognize due to the transactions?

• A)No gain or loss
• B)$3,000 gain
• C)$3,000 loss
• D)$8,000 gain
• E)$5,000 loss

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Definitions:

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, from minutes to lifetimes.

Emotional Memory

The aspect of memory that involves the recollection of emotional experiences or the feelings associated with past events.

Long-Term Memory

A cognitive system responsible for the storage and retrieval of information over an extended period.

Sensory Memory

A memory store thought to hold on to incoming sensory information for very brief periods. A different sensory memory store is hypothesized for each sensory system.