Grantly Seafood Is a Calendar Year Taxpayer

question 40

Multiple Choice

Grantly Seafood is a calendar year taxpayer. In 2010, a hurricane destroyed three of Grantly's fishing boats with a $784,500 aggregate adjusted tax basis. On October 12, 2010, Grantly received a $1.2 million reimbursement from its insurance company. What is the latest date that Grantly can replace the boats to avoid gain recognition from the involuntary conversion?

• A) December 31, 2012
• B) December 31, 2013
• C) December 31, 2014
• D) October 11, 2015

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Definitions:

High-Fiber Foods

Foods rich in dietary fiber, such as fruits, vegetables, and whole grains, which are important for digestive health and can help prevent constipation.

Whole Grain Breads

Breads made from the entire kernel of grain, including the bran, germ, and endosperm, offering higher nutritional value.

Bran Pancakes

Pancakes made with bran, the outer layer of whole grains, known to be high in dietary fiber and beneficial for digestive health.

Peptic Ulcer Disease

A condition where open sores develop on the inside lining of the stomach, upper small intestine, or esophagus due to damage caused by stomach acid and pepsin.