An Apartment Building with an Adjusted Basis of $500,000 Was

question 28

Multiple Choice

An apartment building with an adjusted basis of $500,000 was destroyed by a tornado on April 30,2014.On May 10,2014,the insurance company paid the owner $695,000.The owner reinvested $570,000 in a new apartment complex.What is the basis of the new complex if non-recognition of gain from an involuntary conversion is elected?

• A) $500,000.
• B) $570,000.
• C) $625,000.
• D) $695,000.

---

Definitions:

Cyclic Pathway

A series of biochemical reactions that occur in a sequence where the last step regenerates a reactant for the first step, forming a cycle, such as in the citric acid cycle.

Fossil Fuels

Natural fuels formed from the remains of ancient organisms, such as coal, oil, and natural gas, used as a source of energy.

Photosynthetic Organisms

Organisms that convert light energy into chemical energy through photosynthesis, using water and carbon dioxide to produce oxygen and glucose.

Chlorophyll A

Main photosynthetic pigment in plants.