Based on United States federal tax

QUESTION 1 1.5 points Save Answer Carol's factory burns down in 2021. Her basis in it was $175,000, and she received $300,000 in insurance proceeds from her fire insurance company. She spends $280,000 on a new factory in 2022. How much gain is she taxed on as a result of the situation? Zero. O $20,000. $105,000. $125,000. QUESTION 2 1.5 points Save Answer Sarah's factory burns down. Her basis in it was $240,000 and she receives $400,000 in insurance proceeds from her fire insurance company. She buys a new factory within one year for $460,000. What will her basis in the new factory be? $240,000. $300,000 $400,000. $460.000