A restaurant had a commercial oven destroyed in a flood. The oven originally cost $75,000. The accumulated depreciation on it was $32,000. The proceeds from the insurance company were $49,000. The restaurant should recognize: a. a gain of $6,000 b. a loss of $6,000 c. a gain of $49,000 d. a loss of $43,000 e. a gain of $32,000
A restaurant had a commercial oven destroyed in a flood. The oven originally cost $75,000. The accumulated depreciation on it was $32,000. The proceeds from the insurance company were $49,000. The restaurant should recognize: a. a gain of $6,000 b. a loss of $6,000 c. a gain of $49,000 d. a loss of $43,000 e. a gain of $32,000
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 35CE
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Transcribed Image Text:A restaurant had a commercial oven destroyed in a flood. The oven originally
cost $75,000. The accumulated depreciation on it was $32,000. The proceeds
from the insurance company were $49,000. The restaurant should recognize:
a. a gain of $6,000
b. a loss of $6,000
c. a gain of $49,000
d. a loss of $43,000
e. a gain of $32,000
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