A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2021.
Question:
A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2021. On June 15, 2021, the insurance company paid the owner $395,000. The owner reinvested $470,000 in a new warehouse. What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?
a. $105,000.
b. $250,000.
c. $325,000.
d. $395,000.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Taxation 2022
ISBN: 9781264209408
15th
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander
Question Posted:
Students also viewed these Business questions
-
All the waves shown have the same speed in the same medium. Use a ruler and rank these waves from most to least for a. Amplitude. b. Wavelength. c. Frequency. d. Period. A B C D
-
1. A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2015. On June 15, 2015, the insurance company paid the owner $195,000. The owner reinvested $170,000 in...
-
Multiple Choice Questions 1. A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2014. On June 15, 2014, the insurance company paid the owner $395,000. The owner...
-
The accompanying data are consistent with summary statistics that appeared in the paper Shape of Glass and Amount of Alcohol Poured: Comparative Study of Effect of Practice and Concentration (...
-
What can be accomplished only with a will? How would these matters be handled in the absence of a will? When certain changes occur, its important that you review your will. What are these changes,...
-
Determine the moment at B, then draw the moment diagram for the beam. Assume the support at A is pinned, B is a roller and C is fixed. EI is constant. 4 k/ft B. PA - 12 ft- 15 ft
-
Donna White started her practice as a design consultant on January 1, 2010. During the first month of operations, the business completed the following transactions: Requirements 1. Open the following...
-
Consider the following condensed financial statements of Secure Life, Inc. The companys target rate of return is 12%. Requirements 1. Calculate the companys ROI. Round all of your answers to four...
-
28 29 30 Consider the following data for three divisions of a conglomerate: Division A Division B Division C 31 Sales $140,000 $180,000 $250,000 32 Operating Income 5,000 63,000 14,400 33 Operating...
-
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a...
-
Kyla owns a convenience store with an adjusted basis of $215,000 that was destroyed by a flood on August 15, 2021. Kyla received a check for $275,000 from her insurance company on January 10, 2022,...
-
A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15, 2021. On June 15, 2021, the insurance company paid the owner $195,000. The owner reinvested $170,000 in another...
-
What are the primary market(s) for the Honda Civic GX?
-
The tick mark most likely indicates that the amount was traced to the a. Deposit in transit of the applicable bank reconciliation. b. December cash receipts journal. c. January cash receipts journal....
-
Jiblum, CPA, is planning to use sampling in a test of controls relating to sales. Jiblum has begun to develop an outline of the main steps in the sampling plan as follows: 1. State the objective or...
-
Give examples of selling situations where the use of personal selling is most likely to be particularly effective and important.
-
Distances of track events. In Exercises 714, determine whether the data are qualitative or quantitative. Explain your reasoning.
-
How does the auditor determine which controls need to be tested?
-
Define the meaning of the terms response variable, factor, treatments, and experimental units. Discuss.
-
A survey of 70 college freshmen asked whether students planned to take biology, chemistry, or physics during their first year. Use the diagram to answer each question. How many of the surveyed...
-
Assuming that an AGI limitation does not apply, what amounts of credit for the elderly or the disabled would be permitted in each of the instances in Problem 44? In problem 44 a) A single taxpayer...
-
In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and...
-
Walt and Deloris have two dependent children, Bill and Tiffany. Bill is a freshman at State University and Tiffany is working on her graduate degree. The couple paid qualified expenses of $3,900 for...
-
Abigail would like to endow a chair at MIT for $382,980 per year (i.e., this position will pay the annual salary of $382,980 forever.). At 5.2% interest, how much does Abigail need to donate?
-
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A, B, and C: A Product B Selling price $90.00 $150.00 $170.00...
-
interpret this cashflow statement CASH FLOW Cash Flow Statement Net Income After Taxes +Depreciation -Change in Accounts Receivable +Change in Accounts Payable 2018(m) 2019(m) 2020(m) 2021(m) 91.9...
Study smarter with the SolutionInn App