II. Anthony runs a business. A widget press, adjusted basis 40,000, fair market value 100,000, used...

 

Transcribed Image Text:

II. Anthony runs a business. A widget press, adjusted basis 40,000, fair market value 100,000, used in that business was destroyed by a storm. Insurance pays Anthony 90,000 cash due to destruction of the press. A month later Anthony purchases a smaller press to be used in the business, paying 80,000 for that press. Describe all of the tax consequences to Anthony. ************** II. Anthony runs a business. A widget press, adjusted basis 40,000, fair market value 100,000, used in that business was destroyed by a storm. Insurance pays Anthony 90,000 cash due to destruction of the press. A month later Anthony purchases a smaller press to be used in the business, paying 80,000 for that press. Describe all of the tax consequences to Anthony. **************

Answer rating: 100% (QA)

Here are the tax consequences to Anthony Casualty gain or loss Anthony has a casualty gain of 50000 ... View the full answer