Q 37

A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5,2014.On May 15,2014,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.

Multiple Choice