Ron's Building,which Was Used in His Business,was Destroyed in a Fire.Ron's

question 1

Multiple Choice

Ron's building,which was used in his business,was destroyed in a fire.Ron's adjusted basis in the building was $210,000,and its FMV was $330,000.Ron filed an insurance claim and was reimbursed $300,000.In that same year,Ron invested $240,000 of the insurance proceeds in another business building.Ron will recognize gain of

• A)$0.
• B)$30,000.
• C)$60,000.
• D)$90,000.

---

Definitions:

Long Run

A period where all factors of production and costs are variable and no inputs are fixed.

Unemployment

The condition of being jobless and actively seeking employment, reflecting the number of people in the workforce unable to find jobs.

Government Measure

Actions or initiatives taken by a government to regulate, control, or influence a particular aspect of the economy or society.

Construction

The process of building or assembling infrastructure, including the planning, design, and financing, continuing until the project is ready for use.