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Reid Had a Business Building Destroyed in a Fire

question 74

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Reid had a business building destroyed in a fire. The old building was purchased for $375,700, and $58,600 of depreciation deductions had been taken. Although the old building had a fair market value of $424,930 at the time of the fire, his insurance proceeds were limited to $398,600. Reid found qualified replacement property that he acquired six months later for $389,300. What is the amount of Reid's realized gain and recognized gain?


Definitions:

Stable Isotopes

Variants of elements that have a stable nucleus and do not undergo radioactive decay over time.

Unstable Isotopes

Atoms with a nucleus that has an excess of energy or mass, making them decay into more stable forms over time.

Stable Isotopes

Variants of elements that have the same number of protons but different numbers of neutrons, and do not undergo radioactive decay.

Radioactive Isotopes

Radioactive isotopes, or radioisotopes, are variants of chemical elements that emit radiation due to an unstable nucleus and undergo radioactive decay.

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