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:

Senior Manager

An executive level professional responsible for overseeing the operations and strategies of a department or an entire organization.

Custodial Staff

Employees responsible for cleaning and maintaining buildings, ensuring environments are tidy and sanitary.

Recent Hire

An individual who has been employed by an organization or company in the near past.

Competing Firm

A company that operates in the same industry and market as another, offering similar products or services to the same customer base.