Reid Had a Business Building Destroyed in a Fire

question 116

Essay

Reid had a business building destroyed in a fire. The old building was purchased for $375,550, and $58,900 of depreciation deductions had been taken. Although the old building had a fair market value of $424,945 at the time of the fire, his insurance proceeds were limited to $398,900. Reid found qualified replacement property that he acquired six months later for $389,450. What is the amount of Reid's realized gain and recognized gain?

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Definitions:

Proton Spin Decoupled

A technique in NMR spectroscopy where the coupling between protons is removed to simplify the spectrum.

Distinct Quartets

In NMR spectroscopy, a pattern indicating a group of hydrogen atoms coupled to three other hydrogens, resulting in four equally spaced peaks.

Off-Resonance Decoupled

In NMR spectroscopy, a technique used to simplify complex spectra by decoupling specific nuclei from the observed spin-spin interactions.

Proton Spin Decoupled

A technique in nuclear magnetic resonance (NMR) spectroscopy that removes the interaction between proton spins to simplify the spectrum and aid in structural analysis.