Natural Power Corporation Owns a Warehouse with an Adjusted Basis

question 115

Multiple Choice

Natural Power Corporation owns a warehouse with an adjusted basis of $195,000 and an appraised fair market value of $185,000. The city of Springfield condemns the property for a new airport. The condemnation award is $185,000. Natural Power invests the $185,000 in a new warehouse on the other side of the city. What is the gain or loss that Natural Power Corporation must recognize due to the transactions?

• A)No gain or loss
• B)$10,000 gain
• C)$10,000 loss
• D)$185,000 gain

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Definitions:

Temperament

The aspect of an individual’s personality concerning their natural predispositions towards emotional reactions and behaviors.

Working Self-Concept

The part of one's self-identity that is active and relevant in the current context or social situation.

Emotionality

The quality or state of being emotional; the extent to which a person's behavior is governed by emotions or emotional responses.

Aspect of Temperament

Fundamental personality traits or characteristics that are biologically based and observable from an early age, influencing behavior and emotional reactions.