Multiple Choice
A warehouse used by Dirk Dumont in his business was condemned by the state. fte fair market value of the warehouse was $300,000; however, the state only awarded Dirk $250,000. Dirk's adjusted basis in the warehouse was $100,000. Dirk spent $75,000 to renovate an old barn that he owned in order to convert it to a warehouse, and he also purchased a new warehouse for $125,000. Both warehouses will be used to house the equipment previously held in the state condemned warehouse. What amount should Dirk report as gain or loss on the condemnation if an election is made under Code Sec. 1033?
A) ($100,000)
B) ($50,000)
C) $0
D) $50,000
E) $100,000
Correct Answer:

Verified
Correct Answer:
Verified
Q63: It is possible for both parties to
Q64: fte exchange of a warehouse for a
Q65: Norman Nunn had purchased his residence on
Q66: A like-kind exchange would occur when a
Q67: Which of the following statements are correct?
Q69: Loss from the sale of a personal
Q70: Steve Stromm transfers an office building with
Q71: Jake Jacobson sold his personal residence on
Q72: Real property where Paul Peterson's warehouse is
Q73: Gloria Gates sold the building in which