Identify the tax issue or issues suggested by the following situation, and state each issue in the form of a question. Please reference the Internal Revenue Code for support. A fire$-$damaged industrial equipment used by Firm L in its manufacturing process. Immediately before the fire, the equipment was worth $$40,000.$ After the fire, the equipment was worth only $$15,000.$ Firm L$$s adjusted basis in the equipment was $$14,000,$ and it received only $$10,000$ insurance reimbursement for its loss