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

question 33

Multiple Choice

The building used in Tim's business was condemned by the city of Lafayette.Tim received a condemnation award of $125,000.He paid $1,200 in lawyer's fees and $800 for an appraisal of the property.Tim's adjusted basis in the building was $60,000.Tim reinvests in similar property costing $110,000,and Tim makes the proper election regarding the property.What is the amount of Tim's realized (not recognized) gain on the condemnation?

• A)$0
• B)$50,000
• C)$63,000
• D)$65,000

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Definitions:

Evolutionary Process

A scientific theory that describes the gradual development of species through natural selection and adaptation over time.

Compulsive Acts

Repetitive behaviors that a person feels driven to perform, often without rational motivation, typically associated with obsessive-compulsive disorder.

Phobias

Intense, irrational fears of certain objects or situations, significantly impacting one's ability to function.

Anterior Cingulate

A part of the brain involved in a wide range of cognitive and emotional processes, such as decision-making and impulse control.