Patti's garage (used to store business property) is destroyed by a fire. She decides not...
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Accounting
Patti's garage (used to store business property) is destroyed by a fire. She decides not to replace it and uses the insurance proceeds to invest in her business. The garage had an adjusted basis of $50,000.
a. If the insurance proceeds total $20,000, what is Patti's recognized gain or loss?
b. If the insurance proceeds total $60,000, what is Patti's recognized gain or loss?
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