A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2021.
Question:
A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2021. On June 15, 2021, the insurance company paid the owner $395,000. The owner reinvested $470,000 in a new warehouse. What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?
a. $105,000.
b. $250,000.
c. $325,000.
d. $395,000.
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Related Book For
Fundamentals Of Taxation 2022
ISBN: 9781264209408
15th
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander
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