Emma Owns a Small Building ($120,000 Basis and $123,000 FMV)and

question 24

Multiple Choice

Emma owns a small building ($120,000 basis and $123,000 FMV) and equipment ($35,000 basis and $22,000 FMV) .Both assets were acquired three years ago,are used in Emma's business,and are depreciated using straight-line depreciation.Both are destroyed by fire.Insurance proceeds were equal to their FMVs.Only one other transfer of an asset occurs during the year,and a $3,000 LTCL is recognized.After considering all transactions,the tax result to Emma is a

• A)$13,000 NLTCL.
• B)$13,000 ordinary loss.
• C)$3,000 LTCG; $3,000 LTCL; and $13,000 ordinary loss.
• D)$10,000 net ordinary loss and a $3,000 NLTCL.

---

Definitions:

Counseling

Provision of advice and instruction by a healthcare professional to patients.

Testicular Self-Exam

A procedure by which an individual examines their own testicles to check for lumps, swelling, or any abnormalities that may indicate health issues like testicular cancer.

Screening

Performing a diagnostic test on a person who is typically free of symptoms.

Premenstrual Syndrome

A collection of emotional and physical symptoms that occur in the one to two weeks before a woman's period.