Carrie Owns a Business Building with an Adjusted Basis of $95,000

question 22

Multiple Choice

Carrie owns a business building with an adjusted basis of $95,000 and an appraised fair market value of $98,000. The city of Millerville condemns the property for a new highway. The condemnation award is $98,000. Carrie invests $90,000 of the proceeds into a new building on the other side of the city. What is the gain or loss that Carrie must recognize due to the transactions?

• A)No gain or loss
• B)$3,000 gain
• C)$3,000 loss
• D)$8,000 gain
• E)$5,000 loss

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Definitions:

Shellfish

Aquatic shelled animals, such as shrimp, crabs, and oysters, often used for food, some of which can cause allergic reactions in certain individuals.

KUB Radiography

The process of X-raying the abdomen to help assess the size, shape, and position of the urinary organs; evaluate urinary system diseases or disorders; or determine the presence of kidney stones. It can also be helpful in determining the position of an intrauterine device (IUD) or in locating foreign bodies in the digestive tract; also called a flat plate of the abdomen.

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Pyelonephrosis

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