Carrie Owns a Business Building with an Adjusted Basis of $95,000

Multiple Choice

Carrie owns a business building with an adjusted basis of $95,000 and an appraised fair market value of $98,000. The city of Millerville condemns the property for a new highway. The condemnation award is $98,000. Carrie invests $90,000 of the proceeds into a new building on the other side of the city. What is the gain or loss that Carrie must recognize due to the transactions?

A) No gain or loss
B) $3,000 gain
C) $3,000 loss
D) $8,000 gain
E) $5,000 loss