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:

Allele Frequency

The proportion of all copies of a gene in a population that are of a given allele variant.

Dominant Allele

An allele that is always expressed when it is present, regardless of whether it is homozygous or heterozygous. Compare with recessive allele.

Aa Genotypes

A term referring to individuals with a heterozygous genotype, possessing two different alleles (A and a) at a single genetic locus.

Frequency

In physics, the number of occurrences of a repeating event per unit of time, often used to describe waves or vibrations.