Joyce's Office Building Was Destroyed in a Fire (Adjusted Basis

question 89

Multiple Choice

Joyce's office building was destroyed in a fire (adjusted basis of $350,000; fair market value of $400,000) .Of the insurance proceeds of $360,000 she receives, Joyce uses $310,000 to purchase additional inventory and invests the remaining $50,000 in short-term certificates of deposit.She received only $360,000 because of a co-insurance clause in her insurance policy.What is Joyce's recognized gain or loss?

• A)$0
• B)$10,000 loss
• C)$10,000 gain
• D)$40,000 gain

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Definitions:

Reprimanded

Being formally reproofed or criticized for wrongdoing or a mistake.

Sex Play

Exploration of sexual feelings and interactions, often seen as a normal part of developmental behavior in children.

Unintended Pregnancy

A pregnancy that is either mistimed or unwanted.

Therapist

A professional trained to provide counseling and support to individuals dealing with emotional, psychological, or behavioral issues.