Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the building was $210,000, and its FMV was $330,000. Ron filed an insurance claim and was reimbursed $300,000. In that same year, Ron invested $240,000 of the insurance proceeds in another business building. Ron will recognize the gain of: a. $30,000 b. $0 c. $60,000 d. $90,000
Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the building was $210,000, and its FMV was $330,000. Ron filed an insurance claim and was reimbursed $300,000. In that same year, Ron invested $240,000 of the insurance proceeds in another business building. Ron will recognize the gain of: a. $30,000 b. $0 c. $60,000 d. $90,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 6BCRQ
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Transcribed Image Text:Ron's building, which was used in his business, was destroyed in a fire.
Ron's adjusted basis in the building was $210,000, and its FMV was
$330,000. Ron filed an insurance claim and was reimbursed $300,000. In
that same year, Ron invested $240,000 of the insurance proceeds in another
business building. Ron will recognize the gain of:
a. $30,000
b. $0
c. $60,000
d. $90,000
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