Multiple Choice
Juan's business delivery truck is destroyed in an accident.He paid $40,000 for the truck,and $30,000 of depreciation has been deducted during its period of use.The insurance company pays Juan $32,000 due to the accident.What is the minimum amount that Juan must spend on a new truck to avoid any gain recognition?
A) $40,000
B) $32,000
C) $10,000
D) $22,000
Correct Answer:
Verified
Correct Answer:
Verified
Q83: When the cost of replacement property is
Q84: The involuntary conversion provisions which allow deferral
Q85: Ron and Fay live in Buffalo.They also
Q86: Nana is a self-employed consultant.For the past
Q87: Mitchell and Debbie Dixon,a married couple,sell their
Q89: Under what circumstances can a taxpayer obtain
Q90: The building used in Manuel's business was
Q91: Sometimes taxpayers should structure a transaction to
Q92: In an involuntary conversion,the basis of replacement
Q93: Eduardo owns land held for investment purposes