What is marcus new basis in the replacement ring


Question: Marcus purchased a diamond ring for $15,000 10 years ago. It was stolen in March this year. The ring was purchased to celebrate achieving a significant promotion at work. The FMV at the time of the theft was $20,000. The ring was insured, and after the deductible, Marcus received $19,000 from the insurance company. Marcus replaced the ring with a new one for $20,000. Under Section 1033, what is Marcus's new basis in the replacement ring? A) $16,000 B) $19,000 C) $20,000 D) $15,000

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is marcus new basis in the replacement ring
Reference No:- TGS03417467

Expected delivery within 24 Hours