A Silo Held More Than One Year and Used in a Business

question 125

Multiple Choice

A silo held more than one year and used in a business is destroyed in an earthquake.The silo originally cost $356,000 and was fully depreciated using straight-line depreciation.The silo was insured for its $543,000 replacement cost minus a deductible of $1,000.Which of the statements below is correct concerning these facts?

• A) The silo was a long-term personal use asset.
• B) There is a casualty loss from disposition of the silo.
• C) The recognized gain from disposition of the silo is $186,000.
• D) The recognized gain from disposition of the silo is subject to special netting rules.
• E) c. and d.

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Definitions:

Neurological Deficits

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Emotional Disturbances

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Bayley Scales

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Reflex Development

The process by which infants develop automatic responses to certain stimuli, such as sucking or grasping, as part of their neurological growth.