Reid Had a Business Building Destroyed in a Fire

question 80

Essay

Reid had a business building destroyed in a fire. The old building was purchased for $375,000, and $60,000 of depreciation deductions had been taken. Although the old building had a fair market value of $425,000 at the time of the fire, his insurance proceeds were limited to $400,000. Reid found qualified replacement property that he acquired six months later for $390,000. What is the amount of Reid's realized gain and recognized gain?

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Definitions:

Exceptional Needs

Requirements or accommodations for individuals with disabilities or unique learning challenges to ensure their full participation in education.

Cultural Factors

Aspects of a society's culture, including values, beliefs, traditions, and behaviors, that influence individuals' attitudes and actions within that society.

Educational Factors

Elements that influence the quality and effectiveness of learning, including teaching methods, school environment, and student engagement.

Full Inclusion

An educational approach where all students, regardless of disability, are integrated into general education classrooms for all or most of the day.