Stephanie\'s building, which was used in her business, was destroyed in a fire.

Question

Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie's adjusted basis in the building was $175,000, and its FMV was $210,000. Stephanie filed an insurance claim and was reimbursed $200,000. In that same year, Stephanie invested $180,000 of the insurance proceeds in another business building. Assuming the proper election is made to defer gain, Stephanie's basis in the new building will be a. 180,000 b. 200,000 c. 210,000 d, 175,000 Please provide how you calculated the answer

Explanation / Answer

It will be a)$180000, as that is the actual amount invested in the new building.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.