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

question 125

Multiple Choice

A barn held more than one year and used in a business is destroyed in a tornado. The barn originally cost $356,000 and was fully depreciated using straight-line depreciation. The barn 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 barn was a long-term personal use asset.
• B) There is a casualty loss from disposition of the barn.
• C) The recognized gain from disposition of the barn is $186,000.
• D) The recognized gain from disposition of the barn is subject to special netting rules.
• E) c. and d.

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Definitions:

Surgery

A branch of medicine that deals with the treatment of injury, deformity, and disease by manual and instrumental operations.

Genotype

The genetic constitution of an individual organism, referring to the specific alleles or variants at particular loci in the genome.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Allele Dominance

A genetic principle where one allele (variant of a gene) masks the expression of another allele at the same gene locus, determining the organism's phenotype.