A Barn Held More Than One Year and Used in a Business

question 125

Multiple Choice

A barn held more than one year and used in a business is destroyed in a tornado. The barn originally cost $356,000 and was fully depreciated using straight-line depreciation. The barn was insured for its $543,000 replacement cost minus a deductible of $1,000. Which of the statements below is correct concerning these facts?

• A) The barn was a long-term personal use asset.
• B) There is a casualty loss from disposition of the barn.
• C) The recognized gain from disposition of the barn is $186,000.
• D) The recognized gain from disposition of the barn is subject to special netting rules.
• E) c. and d.

---

Definitions:

Ballot-Access Laws

Regulations that determine the criteria by which a candidate or political party can appear on voters' ballots, varying significantly by jurisdiction and often including requirements for petitions or fees.

Registration Fees

Charges levied for the process of officially recording or enrolling a person, vehicle, or entity within a system or for a service.

Petition Requirements

Regulations or criteria that must be met for a petition to be considered valid or for further action to be taken.

Federalists

A political group in the early United States advocating for a strong federal government and the ratification of the Constitution, contrasting with the anti-federalists.