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:

Ingroup Bias

The tendency to favor one's own group over other groups, leading to preferential treatment and positive evaluations of group members.

Self-esteem

An indicator of the degree to which you hold yourself in esteem, confidence, and regard.

Social Inequalities

The unequal distribution of resources, opportunities, and rights among people in a society, often based on characteristics like race, gender, or socioeconomic status.

Prejudice

A prejudgment or unjustifiable, and usually negative, attitude of one type of individual or groups toward another group and its members.