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Janes antique Thunderbird has a basis of $25,000 but catches on fire and is a total loss. Her insurance company pays $35,000 for her Thunderbird.
Janes antique Thunderbird has a basis of $25,000 but catches on fire and is a total loss. Her insurance company pays $35,000 for her Thunderbird. Jane purchases a new Thunderbird.
1. What is Janes gain or loss and the basis of the new Thunderbird if she:
A. Reinvests $40,000?
B. Reinvests $32,000?
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