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

question 30

Multiple Choice

A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5,2017.On May 15,2017,the insurance company paid the owner $150,000.The owner reinvested $170,000 in another barn.What is the basis of the new barn if non-recognition of gain from an involuntary conversion is elected?

• A)$0.
• B)$120,000.
• C)$145,000.
• D)$170,000.

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Definitions:

Inconsistent Tense

Refers to the misuse of past, present, or future tenses in writing, leading to a lack of clarity and cohesion in the text.

Faulty Parallelism

A grammatical error in which parts of a sentence that are meant to be parallel in structure are not consistent in form.

Inconsistent Tense

A grammatical error where verb tenses are not maintained consistently throughout a piece of writing, affecting clarity and coherence.

Acceptance Speech

A speech given to acknowledge and express gratitude for an award, position, or recognition received.