Tax Accounting , business and finance homework help
Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market value of the bowling alley was $230,000 before the tornado and its adjusted basis was $100,000. Tobias received $220,000 from his insurance company but he decided to not rebuild the alley. What is Tobias’ recognized gain or loss from this transaction?
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$ 0 |
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Loss of $230,000 |
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Gain of $120,000 |
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Gain of $220,000 |
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