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

question 30

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.Assuming the proper election is made to defer gain,Stephanie's basis in the new building will be

• A)$175,000.
• B)$180,000.
• C)$200,000.
• D)$210,000.

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Definitions:

Target Point

A pre-determined objective or value that serves as a reference for performance or negotiation.

Impasse

A situation in negotiation where no progress can be made or no advancement is possible.

American Federation of Labor

A historic national federation of labor unions in the United States, founded in 1886 to advance the interests of skilled workers.

Skilled Labor

Refers to workers who possess specialized training, knowledge, and experience needed to perform specific tasks or jobs.