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Sheena Maskell Sheena Maskell
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7 years ago
An office building owned by Abby and used in her business was destroyed in a fire. Abby's adjusted basis in the building was $145,000 and its FMV was $180,000. Abby filed an insurance claim and she was reimbursed $160,000. In that same year, Abby invested $150,000 of the insurance proceeds in another business building.
a.   Assume Abby made the proper election with regard to the involuntary conversion. What is the amount of gain to be recognized (no realized) by Abby?
b.   What is Abby's basis in the new building?
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
Authors:
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Yoko900Yoko900
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Sheena M. Author
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7 years ago
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