Thieves Stole Computer Equipment Used by Ms

question 56

Multiple Choice

Thieves stole computer equipment used by Ms.James in her small business.Ms.James' tax basis in the equipment was zero.One month after the theft,she received a $17,600 reimbursement from her casualty insurance company and used $14,850 to replace the computer equipment.She used the $2,750 remaining reimbursement to purchase a new desk for her office.Which of the following statements is false?

• A)Ms.James must recognize a $2,750 gain on the involuntary conversion.
• B)Ms.James's basis in her new computer equipment is -0-.
• C)Ms.James's basis in her new desk is $2,750.
• D)None of the above is false.

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Definitions:

End Results

The final outcomes or consequences of actions, projects, or processes, often used to evaluate success or effectiveness.

Work Inputs

The effort, energy, and resources employed by workers to accomplish tasks and produce goods or services.

Comparison Methods

Techniques used in analysis that involve evaluating two or more objects, ideas, or data sets to identify their differences, similarities, or both.

Results With Objectives

A performance management approach focusing on achieving specific outcomes or objectives within a set timeframe.