Homer Corporation's Office Building Was Destroyed by Fire

question 266

Multiple Choice

Homer Corporation's office building was destroyed by fire. Homer collected insurance of $250,000, which equaled the building's basis, and $150,000 for profits lost during the time the company was rebuilding the office building. What is the amount taxable this year?

• A) $150,000
• B) $0
• C) $250,000
• D) $400,000

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Definitions:

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