Camilo’s property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken.

a. What is Camilo’s realized and recognized gain?

b. What is the basis of the replacement property

The correct answer for (a) is $25,000 and $0 and for option (b) is $155,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Adjusted basis = $155,000

Fair market value = $180,000

(a). Realized gain = Fair market value - Adjusted basis

= $180,000 - $155,000

= $25,000

As, fair market value is more than the adjusted basis, so there will be no recognized gain.

So, Recognized gain = $0

(b). We can calculate the basis of the replacement by using following formula:

Basis = Market value - Realized gain

= $180,000 - $25,000

= $155,000

answer; bootstrapping is your answer;

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi