A Warehouse with an Adjusted Basis of $125,000 Was Destroyed

question 46

Essay

A warehouse with an adjusted basis of $125,000 was destroyed by a tornado on April 15,2018.On June 15,2018,the insurance company paid the owner $195,000.The owner reinvested $170,000 in a warehouse.What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?

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Definitions:

Postsynaptic Membrane

The part of the nerve cell that receives signals from another neuron at a synapse, responding to the neurotransmitters released.

Neurotransmitter Release

The process by which neurotransmitters are released from the synaptic vesicles of a neuron into the synaptic cleft to transmit signals to other neurons.

Neurotransmitters

Neurotransmitters are chemical messengers that transmit signals across a chemical synapse from one neuron to another target neuron, muscle cell, or gland cell.

Presynaptic Terminal

The end part of an axon from which neurotransmitters are released into the synaptic cleft to communicate with a neighboring neuron.