Homer Corporation's Office Building Was Destroyed by Fire

question 20

Multiple Choice

Homer Corporation's office building was destroyed by fire.Homer collected insurance of $250,000,which equaled the building's basis,and $150,000 for profits lost during the time the company was rebuilding the office building.What is the amount taxable this year?

• A)$0
• B)$150,000
• C)$250,000
• D)$400,000

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Definitions:

Vertebrate

An animal possessing a backbone or spinal column, including mammals, birds, reptiles, amphibians, and fish.

Lymph System

A network of vessels, tissues, and organs that helps to maintain the body's fluid balance and protect it from infections.

Digestive System

A group of organs working together to convert food into energy and basic nutrients to feed the entire body.

Plasma Proteins

Proteins such as albumins, globulins, and fibrinogen that circulate in the blood plasma.