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

question 47

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 to defer gain,Stephanie will recognize gain of

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

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Definitions:

Legally Obligated

Bound by law to perform a particular action or adhere to a set of rules or outcomes.

Basic Need

Fundamental requirements that sustain human life, such as food, water, shelter, and safety.

Shelter

A structure or place providing protection from weather, danger, or discomfort; it can also refer to organizations offering refuge to the homeless or abused.

Emancipated Minor

A person under the age of majority who is granted most adult rights through a legal process, including the ability to enter contracts and make healthcare decisions.