Juan owned a small rental property,which was condemned by the county to expand a local park.His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county.A year later he purchased a similar piece of real estate for $70,000.What is Juan's basis in the replacement property?
A)$40,000
B)$45,000
C)$50,000
D)$70,000
E)$75,000

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The Answer of Juan owned a small rental property,which was condemned by the county to expand a local park.His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county.A year later he purchased a similar piece of real estate for $70,000.What is Juan's basis in the replacement property?
A)$40,000
B)$45,000
C)$50,000
D)$70,000
E)$75,000

Juan Owned a Small Rental Property,which Was Condemned by the County