Evelyn's Office Building Is Destroyed by Fire on July 12

question 85

Essay

Evelyn's office building is destroyed by fire on July 12, 2012.The adjusted basis is $315,000.She receives insurance proceeds of $350,000 on August 31, 2012.Calculate the amount that Evelyn must reinvest in qualifying property in order that her recognized gain be $20,000.Assume she elects § 1033 (nonrecognition of gain from an involuntary conversion) postponement treatment.

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Definitions:

Extinction

In the context of behavior, the gradual reduction and eventual elimination of a conditioned response.

Successive Approximations

This is a method in behavioral psychology where behaviors are gradually trained by rewarding approximations of the desired behavior.

Positive Reinforcement

A technique in behavior management that reinforces desired behaviors by rewarding them, encouraging their repetition.

Shaping

A technique used in behavior modification that involves successively reinforcing behaviors that approximate the target behavior.