On July 2, 2012, a Tornado Destroyed an Asset Owned

question 87

True/False

On July 2, 2012, 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, 2013.

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Definitions:

Cognitive Symptoms

Mental characteristics such as memory loss, lack of focus, or difficulty in processing information that might indicate a health issue.

Suicide Risk

The likelihood that an individual will attempt to take their own life or engage in behavior with a significant risk of resulting in their death.

GAD

Generalized Anxiety Disorder, a mental health condition characterized by persistent and excessive worry about various aspects of daily life.

Major Depressive Disorder

A mental disorder characterized by at least two weeks of persistent sadness, loss of interest in activities, and other emotional and physical problems.