Which statements is correct concerning the facts

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Problem 1: A barn held more than one year and used in a business is destroyed in a tornado. The barn originally cost $356,000 and was fully depreciated using straight-line depreciation. The barn was insured for its $543,000 replacement cost minus a deductible of $1,000. Which of the following statements is correct concerning these facts?

a. The recognized gain from disposition of the barn is $186,000.
b. There is a casualty loss from disposition of the barn.
c. The recognized gain from disposition of the barn is subject to special netting rules.
d. The barn was a long-term personal use asset.

Reference no: EM132730688

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