Ed owns a racehorse with a $600,000 basis used for breeding purposes.The racehorse is killed in a tornado,and Ed collects $1,000,000 from the insurance company.He purchases another horse for $550,000.What is the amount of gain recognized on the transaction?
A)$0
B)$50,000
C)$350,000
D)$400,000

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The Answer of Ed owns a racehorse with a $600,000 basis used for breeding purposes.The racehorse is killed in a tornado,and Ed collects $1,000,000 from the insurance company.He purchases another horse for $550,000.What is the amount of gain recognized on the transaction?
A)$0
B)$50,000
C)$350,000
D)$400,000

Ed Owns a Racehorse with a $600,000 Basis Used for Breeding