Bonilla Company's Office Building Was Destroyed by a Tornado

question 9

Multiple Choice

Bonilla Company's office building was destroyed by a tornado. fte insurance company paid Bonilla $600,000 for the destruction of the office building within 30 days after the tornado. At the time of the tornado, Bonilla had an adjusted basis of $240,000 in the office building. Within six months after the tornado, Bonilla bought a new office building for $500,000 by paying $320,000 in cash and signing a mortgage note for $180,000. What is the minimum amount of gain that Bonilla must recognize on the involuntary conversion of its office building?

• A) $0.
• B) $100,000.
• C) $280,000.
• D) $360,000.

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Definitions:

Primary Sex Characteristics

The biological and physical attributes that are directly involved in reproduction, such as the gonads and external genitalia.

External Sex Organs

Refer to the parts of the reproductive system located outside of the body, which are involved in sexual reproduction and function.

Internal Sex Organs

Refers to the organs within the body responsible for reproduction, including the uterus, ovaries, testes, and prostate.

Genital Ambiguity

A condition in which the external genitalia do not have the typical appearance of either a male or a female.