Charlotte's Apartment Building That Has an Adjusted Basis of $200,000

question 95

Multiple Choice

Charlotte's apartment building that has an adjusted basis of $200,000 is destroyed by fire. Early the following year, Charlotte receives a $425,000 insurance check and reinvests $400,000 of the proceeds in an apartment building. What is the basis in the new building?

• A)$- 0 -
• B)$425,000
• C)$400,000
• D)$200,000
• E)$175,000

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Definitions:

Independent Variable

In experimental and statistical research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

In research, the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Manipulated

Being controlled or influenced in an unfair or deceitful way, often without awareness of the manipulation.