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II. Anthony runs a business. A widget press, adjusted basis 40,000, fair market value 100,000, used in that business was destroyed by a storm.

 

II. Anthony runs a business. A widget press, adjusted basis 40,000, fair market value 100,000, used in that business was destroyed by a storm. Insurance pays Anthony 90,000 cash due to destruction of the press. A month later Anthony purchases a smaller press to be used in the business, paying 80,000 for that press. Describe all of the tax consequences to Anthony. **************

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