Sid's Home Was Destroyed by Fire

question 42

Multiple Choice

Sid's home was destroyed by fire.He had purchased the home 18 months ago for $950,000.He received $1,300,000 from his insurance company to replace the home.If he fails to rebuild the home or acquire a replacement home in the required time,how much gain must he recognize on this conversion?

• A)$350,000
• B)$162,500
• C)$100,000
• D)$0
• E)None of the above

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Definitions:

Civil Rights Act

A significant law in the United States that prohibits discrimination due to one's race, color, religious beliefs, gender, or country of origin.

Bona Fide Occupational Qualification

An employment qualification that an employer must prove is necessary for the operation of a particular job and is therefore not considered discrimination.

Customer Preference

The inclinations or choices of consumers regarding products, services, or companies, often influenced by personal taste, quality, and price.

Equal Pay Act

A law aimed at abolishing wage disparity based on sex by ensuring equal pay for equal work for both men and women.