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:

High Contact Time

Situations where there is extensive interaction or engagement over a period between two parties, such as in education or customer service.

Process Costing Systems

An accounting system used in manufacturing where costs are assigned to processes or departments and then allocated to products.

Mass Services

Services that are provided on a large scale, aiming at a broad customer base, often standardized for efficiency.

Upstream Activity

Refers to the initial stages in the production process, often including exploration and extraction in industries like oil and gas.