Bill Binkley's oﬃce building with a basis of $480,000 is condemned by the state. fte state awards him $600,000 and he then purchases a new oﬃce building for $520,000. What is Bill's basis in the new residence?
A) $480,000
B) $520,000
C) $600,000
D) $400,000

Question

Quizplus · Accepted Answer

the basis of the new property is $480,000 ($520,000 cost of new property less the gain not recognized of
$40,000 ($120,000 less $80,000)).

Bill Binkley's Oﬃce Building with a Basis of $480,000 Is