Emma Owns a Small Building ($120,000 Basis and $123,000 FMV)and

question 24

Multiple Choice

Emma owns a small building ($120,000 basis and $123,000 FMV) and equipment ($35,000 basis and $22,000 FMV) .Both assets were acquired three years ago,are used in Emma's business,and are depreciated using straight-line depreciation.Both are destroyed by fire.Insurance proceeds were equal to their FMVs.Only one other transfer of an asset occurs during the year,and a $3,000 LTCL is recognized.After considering all transactions,the tax result to Emma is a

• A)$13,000 NLTCL.
• B)$13,000 ordinary loss.
• C)$3,000 LTCG; $3,000 LTCL; and $13,000 ordinary loss.
• D)$10,000 net ordinary loss and a $3,000 NLTCL.

---

Definitions:

Caregiving Workload

The amount and intensity of caregiving tasks and responsibilities, typically in the context of looking after sick, elderly, or young dependents.

Stress

The way the body reacts to any pressure or obstacle, which can be provoked by both beneficial and adverse experiences.

Delay Childbearing

The choice or occurrence of postponing pregnancy and the birth of children to a later period in life.

Lead Surgeon

The primary surgeon responsible for performing a surgical operation and making critical decisions about the procedure.