Answer:D
Explanation:
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Answer: $132,000
Explanation:
Oscar's new basis on the building will be the basis of the old building plus any additional investment he added.
This is the because there is no gain on the $140,000 he received because it was an Involuntary Conversion amount and he reinvested it into another building within a period of 2 years.
As there is no gain, the building will retain it's original basis but will add any amount outside the involuntary replacement cost of the building.
The Additional basis will be,
= Cost of building - Insurance
= 142,000 - 140,000
= $2,000
The Basis for the new building is,
= 130,000 + 2,000
= $132,000
When you are considering a financial institution you should consider what type of accounts you want to have, how much money you have and if you want to invest. Different financial institutions offer different rates and benefits for their members so it makes sense to figure out your options based on what you want in return.
In a scenario where the fed raise the reserve requirement, the demand for reserves would increase.
<h3>What is a reserve requirement?</h3>
A reserve requirement simply means the amount of money that banks are expected to keep with the central bank.
It should be noted that when the fed raise the reserve requirement, the demand for reserves would increase, therefore, the federal rates would fall.
Learn more about reserve requirements on:
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