Mark's warehouse, which was used in his business, was destroyed by a tornado. Mark's adjusted basis in the warehouse was $375,000, and its FMV was $525,000. Mark filed an insurance claim and was reimbursed $480,000. In that same year, Mark invested $420,000 of the insurance proceeds in another business warehouse. Mark will recognize the gain of: a. $45,000 b. $105,000 c. $60,000 d. $150,000
Mark's warehouse, which was used in his business, was destroyed by a tornado. Mark's adjusted basis in the warehouse was $375,000, and its FMV was $525,000. Mark filed an insurance claim and was reimbursed $480,000. In that same year, Mark invested $420,000 of the insurance proceeds in another business warehouse. Mark will recognize the gain of: a. $45,000 b. $105,000 c. $60,000 d. $150,000
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 67P
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Can you please answer the general accounting question?
Transcribed Image Text:Mark's warehouse, which was used in his business, was
destroyed by a tornado. Mark's adjusted basis in the warehouse
was $375,000, and its FMV was $525,000. Mark filed an
insurance claim and was reimbursed $480,000. In that same
year, Mark invested $420,000 of the insurance proceeds in
another business warehouse. Mark will recognize the gain of:
a. $45,000
b. $105,000
c. $60,000
d. $150,000
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