The Office Building Donna Owned and Used for Her Desk-Top $\quad$

question 73

Essay

The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane.Although the basis of the building was $80,000,Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss.It cost her $152,000 to rebuild the store in 2014.
a. Calculate Donna's recognized gain, assuming an election under the $\quad$ $_______ involuntary
b. Calculate Donna's basis in the replacement building. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $_______

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Definitions:

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.

Profit Margin

A measure of profitability, calculated as net income divided by revenue, indicating the percentage of revenue that exceeds the costs of goods sold.

Investment Turnover

Investment turnover measures how effectively a company uses its assets to generate sales revenue, indicating the efficiency of asset management.