Stephanie's Building,which Was Used in Her Business,was Destroyed in a Fire.Stephanie's

question 6

Multiple Choice

Stephanie's building,which was used in her business,was destroyed in a fire.Stephanie's adjusted basis in the building was $175,000,and its FMV was $210,000.Stephanie filed an insurance claim and was reimbursed $200,000.In that same year,Stephanie invested $180,000 of the insurance proceeds in another business building.If the proper election is made,Stephanie will recognize gain of

• A)$ 0.
• B)$15,000.
• C)$20,000.
• D)$25,000.

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Definitions:

Companies Compete

The state in which businesses are in active pursuit of gaining an advantage or superiority over others in the same industry or market.

Dependent Contractors

Dependent contractors are workers who, although operating independently from their clients, have a significant portion of their income or work coming from a single client, potentially giving the client some level of control or dependence.

Competitive Advantage

A significant edge a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Fast-Growth Companies

Businesses characterized by rapid expansion in revenue, size, or market share over a short period.