Solved

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

question 2

Multiple Choice

A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5,2014.On May 15,2014,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?

Definitions:

Positive Reinforcement

A technique in behavior modification that involves providing a reward following a desired behavior to increase the likelihood of its recurrence.

Disruptive Behaviour

Actions that disturb or interrupt normal processes, events, or activities, often marked by aggression or defiance.

Criticize

To express disapproval of someone or something based on perceived faults or mistakes.

Resistance To Extinction

The persistence of a learned behavior even after reinforcement is no longer presented, often observed in conditioning studies.