On July 2,2019,a Tornado Destroyed an Asset Owned by Leigh

True/False

On July 2,2019,a tornado destroyed an asset owned by Leigh Inc.,a calendar year taxpayer.Leigh's adjusted tax basis in the asset was $22,700,and the reimbursement from its property insurance company was $35,000.If Leigh wants to defer recognizing its $12,300 realized gain,it must replace the asset no later than December 31,2020.