Sam's Office Building with an Adjusted Basis of $750,000 and a Fair

question 94

Multiple Choice

Sam's office building with an adjusted basis of $750,000 and a fair market value of $900,000 is condemned on November 30, 2012.Sam is a calendar year taxpayer.He receives a condemnation award of $875,000 on March 1, 2013.He builds a new office building at a cost of $845,000 which is completed and paid for on December 31, 2015.What is Sam's recognized gain on receipt of the condemnation award and basis for the new office building assuming his objective is to minimize gain recognition?

• A)$0; $720,000.
• B)$30,000; $750,000.
• C)$30,000; $845,000.
• D)$150,000; $750,000.
• E)None of the above.

Grasp the significance of utmost good faith in agency agreements and the consequences of breach.

Outline the rights and obligations of parties in an agency agreement, including termination conditions.

Comprehend the role and implications of apparent authority in agency relationships.

Learn the principles governing the ratification of contracts by principals.

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Definitions:

Underrepresentation

The inadequate or disproportionately low representation of a particular group or groups in a certain area or field, relative to their numbers in the general population.

Constant Change

A state where elements or conditions undergo frequent updates or alterations.

Repetitive Work

Tasks or jobs that involve performing the same functions or processes multiple times, often considered monotonous.

Transferable Skills

Skills acquired in one context (like a job or hobby) that are applicable to other contexts, valued for their versatility across different roles and industries.