Carl Purchased a Building Costing $120,000 in 2000 for Use

question 16

Essay

Carl purchased a building costing $120,000 in 2000 for use in his landscape business.In 2009,he built an addition to the building at a cost of $30,000.In 2012,a tornado damaged the building.The cost of repairing the building was $22,000 and Carl's insurance company paid $16,000 of the cost of the repairs.Depreciation deducted on the building for 2000 through 2017 totaled $18,000.What is Carl's adjusted basis in the building at the end of 2017? Explain.

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Definitions:

Unpleasant Event

An incident or occurrence that causes discomfort, distress, or dissatisfaction.

Pleasant Event

An occurrence or experience that brings joy, satisfaction, or happiness to those involved.

Negative Reinforcement

A psychological strategy that involves the removal of an unfavorable outcome or stimulus to increase the likelihood of a desired behavior.

Positive Reinforcement

A technique in behavior management that involves providing a reward or incentive following a desired behavior to increase the likelihood of its recurrence.