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:

Nucleolus

A small dense spherical structure in the nucleus of a cell, involved in the production and assembly of ribosomes.

Nucleus

The nucleus is a membrane-bound organelle found in eukaryotic cells that contains most of the cell's genetic material.

Nucleosome

A structural unit of chromatin composed of a segment of DNA wound around a core of histone proteins, contributing to DNA packaging within the nucleus.

mRNA Synthesis

The process of creating messenger RNA (mRNA), which serves as a template for protein synthesis in cells, from a DNA template.