asked 57.0k views
1 vote
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

1 Answer

2 votes

Answer:

$1,75,000

Step-by-step explanation:

Please see attachment

Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie-example-1
answered
User Silmathoron
by
8.5k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.