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Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie's adjusted basis in the building was $175,000, and its FMV was $210,000. Stephanie filed an insurance claim and was reimbursed $200,000. In that same year, Stephanie invested $180,000 of the insurance proceeds in another business building. Assuming the proper election is made to defer gain, Stephanie's basis in the new building will be

User Yu Chia Wu
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Answer:

$1,75,000

Step-by-step explanation:

Please see attachment

Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie-example-1
User Silmathoron
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