A Flood Destroys Owen's Building That Cost $100,000 in 2009,which

question 38

Multiple Choice

A flood destroys Owen's building that cost $100,000 in 2009,which has an adjusted basis of $80,000.Owen's insurance company reimburses him $125,000 for his loss.Owen promptly reconstructs the building for $115,000.What is the minimum amount of gain that Owen must recognize and his basis in the new building?
​
Recognized New
Gain Basis

• A)$-0- $80,000
• B)$-0- $115,000
• C)$10,000 $80,000
• D)$10,000 $115,000
• E)$10,000 $150,000

---

Definitions:

Neurotransmitters

Specialized chemicals that facilitate or inhibit the transmission of impulses from one neuron to the next.

Chemical Imbalance

A theory suggesting that mental health conditions are associated with the imbalance of neurotransmitters or other chemicals in the brain.

Biological Model

A framework for understanding psychological problems and behaviors through biological or physiological processes.

Severe Anxiety

A heightened state of excessive and intense fear and worry that significantly impairs day-to-day functioning.