Alyssa's Personal Residence (Adjusted Basis of $100,000) Was Condemned, and She

question 58

Multiple Choice

Alyssa's personal residence (adjusted basis of $100,000) was condemned, and she received a condemnation award of $80,000.Alyssa used the condemnation proceeds to purchase a new residence for $90,000.What is Alyssa's recognized gain or loss and her basis in the new residence?

• A)$0; $70,000.
• B)$0; $90,000.
• C)($20,000); $90,000.
• D)($20,000); $70,000.

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