An Apartment Building with an Adjusted Basis of $500,000 Was

question 24

Multiple Choice

An apartment building with an adjusted basis of $500,000 was destroyed by a tornado on April 30, 2015. On May 10, 2015, the insurance company paid the owner $695,000. The owner reinvested $570,000 in a new apartment complex. What is the basis of the new complex if non-recognition of gain from an involuntary conversion is elected?

• A) $500,000.
• B) $570,000.
• C) $625,000.
• D)$695,000.

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Definitions:

Social Behaviors

Actions and reactions of individuals or groups in response to external or internal stimuli, influenced by cultural, social, and psychological factors.

George Homans

An influential American sociologist known for developing social exchange theory, which explains social change and stability as a process of negotiated exchanges between parties.

Desirable Rewards

Refers to benefits or incentives that are sought after by individuals or groups in various contexts, such as workplaces, social settings, or educational environments.

George Homans

An American sociologist, considered one of the major contributors to social exchange theory, highlighting reward and cost analysis in social interactions.