QUESTION 10 In March, a flood completely destroyed a delivery truck owned by Totle Inc. Totle's adjusted tax basis in the truck was $48,900 ($62,000 cost less $13,100 accumulated depreciation). Totle received a $51,000 reimbursement from its property insurance company, and in September it purchased a new delivery truck for $37,000. Compute Totle's recognized gain or loss on this transaction and its tax basis in the new truck. $0 recognized gain or loss; $34,900 basis in the truck. $2,100 recognized gain; $37,000 basis in the truck. $14,000 recognized gain; $37,000 basis in the truck. $0 recognized gain or loss; $39,000 basis in the truck. o $13,100 recognized gain; $37,000 basis in the truck. QUESTION 12 The stock of Wheel Corporation, a U.S. company, is publicly-traded, with no single shareholder owning more than 5 percent of its outstanding stock. Wheel owns 90 percent of the outstanding stock of Axle, Inc., also a U.S. company. Axle owns 100% of the outstanding stock of Tire Corporation, a German company. Wheel and Tire each own 50 percent of the outstanding stock of Bumper, Inc., a U.S. Company. Wheel and Axle each own 50 percent of the outstanidng tock of Trunk Corporationm a U.S. company. Which of these corporations form an affiliated group eligible to file a consolidated tax return? Wheel, Axle, Tire, Bumper, and Trunk are an affiliated group. o Wheel, Axle, and Tire are an affiliated group. o Wheel and Axle are an affiliated group. Wheel, Axle, and Truck are an affiliated group.