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

question 90

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

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Definitions:

Adaptation

A process by which organisms adjust to their environment to enhance survival and reproductive success.

Organisms Change

Organisms change refers to the process of evolution, where species undergo modifications in traits over generations due to genetic variation and natural selection.

Jean-Baptiste Lamarck

An 18th-century French naturalist known for his theory of inheritance of acquired characteristics, a hypothesis preceding Darwin's theory of natural selection.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.