Steve has a manufacturing business In the current year, his storage building is destroyed by fire It had an adjusted basis of $75,000 He received $300,000 from the insurance company and elected to replace the building under the involuntary conversion provisions He built a new storage building for $350,000 What is the basis of the new storage building a$150,000 b$125,000 c$100,000 d$75,000
Steve has a manufacturing business In the current year, his storage building is destroyed by fire It had an adjusted basis of $75,000 He received $300,000 from the insurance company and elected to replace the building under the involuntary conversion provisions He built a new storage building for $350,000 What is the basis of the new storage building a$150,000 b$125,000 c$100,000 d$75,000
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 21P
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Question
Steve has a manufacturing business In the current year, his storage building is destroyed by fire It had an adjusted basis of $75,000 He received $300,000 from the insurance company and elected to replace the building under the involuntary conversion provisions He built a new storage building for $350,000
What is the basis of the new storage building
a$150,000
b$125,000
c$100,000
d$75,000
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