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:

Fully Develop

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Months

Units of time, typically consisting of 28 to 31 days, used in calendars to divide the year into twelve periods.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

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Very young children, typically under one year old, who are in the earliest stages of physical and cognitive development.