Multiple Choice
A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5,2017.On May 15,2017,the insurance company paid the owner $150,000.The owner reinvested $170,000 in another barn.What is the basis of the new barn if non-recognition of gain from an involuntary conversion is elected?
A) $0.
B) $120,000.
C) $145,000.
D) $170,000.
Correct Answer:
Verified
Correct Answer:
Verified
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