Please explain Pizza corporation factory was destroyed by a hurricane. The...
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Accounting
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Pizza corporation factory was destroyed by a hurricane. The fair market value of the factory at the time of the hurricane was $500,000 and its adjusted basis was $750,000. Pizza received insurance proceeds of $620,000, which it used to immediately buy a new factory. What gain or loss will pizza recognize related to the factory in the current year?
$120,000 gain
$250,000 loss
No gain or loss
$130,000 loss
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