On July 2, 2018, a Tornado Destroyed an Asset Owned

question 67

True/False

On July 2, 2018, a tornado destroyed an asset owned by Leigh Inc., a calendar year taxpayer. Leigh's adjusted tax basis in the asset was $22,700, and the reimbursement from its property insurance company was $35,000. If Leigh wants to defer recognizing its $12,300 realized gain, it must replace the asset no later than December 31, 2019.

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Definitions:

Tariff

A tax imposed on imported goods and services to increase their price, protect domestic industries, or generate revenue.

Roses Imported

The total quantity or value of roses brought into a country from abroad for sale.

Tariff Size

The magnitude of a tax imposed on imported goods, often used by governments to protect domestic industries or generate revenue.

Roses

A type of flowering shrub of the genus Rosa, known for its beauty, fragrance, and cultural significance in many societies.