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

question 52

Multiple Choice

The building used in Terry's business was condemned by the city of St.Louis.Terry received a condemnation award of $125,000.He paid $1,200 in lawyer's fees and $800 for an appraisal of the property.Terry's adjusted basis in the building was $60,000.Terry reinvests in similar property costing $110,000,and Terry makes the proper election regarding the property.What is the amount of Terry's recognized gain on the condemnation?

• A)$15,000
• B)$13,000
• C)$50,000
• D)$63,000

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Definitions:

Shoplifting

The act of stealing goods from a store while pretending to shop, a common form of theft.

Psychopath

An individual with a personality disorder characterized by persistent antisocial behavior, impaired empathy, and often, bold, disinhibited, and egotistical traits.

Manipulative

Characterized by skillful control or influence over others, often in a deceptive or unfair manner.

Emotionally Exploits

Taking advantage of others by manipulating their emotions for personal gain.