A barn with an adjusted basis of 125,000 was destroyed by a tornado on March 5, 2011 on May 15,...
Question:
A barn with an adjusted basis of 125,000 was destroyed by a tornado on March 5, 2011 on May 15, 2011 the insurance company paid the owner 150,000 the owner reingested 170,000 in another barn what is the basis of the new barn if non-recognition of gain from an involuntary conversion is elected?
a- 0
b- 120,000
c- 145,000
d- 170,000
Insurance Company:
An insurance company refers to a financial institution that is formed under the prescribed law to protect any individual or business from risk of loss. An insurance company claims that if any loss occurs for which the insurance is purchased, the company will bear all the loss.
Answer and Explanation: 1
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View this answerThe correct answer is c- 145,000.
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