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Pattis garage (used to store business property) is destroyed by a fire. She decides not to replace it and uses the insurance proceeds to invest
Pattis garage (used to store business property) is destroyed by a fire. She decides not to replace it and uses the insurance proceeds to invest in her business. The garage had an adjusted basis of $50,000.
If the insurance proceeds total $20,000, what is Pattis recognized gain or loss? If the insurance proceeds total $60,000, what is Pattis recognized gain or loss?
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