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:

Sleep Deprivation

Lack of adequate sleep, which can lead to various physical and mental health issues.

Cumulative

Describes something increasing in quantity, degree, or force by successive additions.

Tolerance

Condition of experiencing less and less effect from the same dose of a substance.

Rhythmical Responses

Repetitive and patterned reactions, often in the context of music therapy or psychological assessments, indicating cognitive and emotional states.