If the amount of the insurance recovery for a theft of business property is greater than the asset's fair market value
(FMV) but less than its adjusted basis, a gain is recognized.

Question

Quizplus · Accepted Answer

If the insurance recovery is greater than the FMV but less than the adjusted basis, no gain is recognized. Instead, the loss is limited to the difference between the adjusted basis and the FMV.

If the Amount of the Insurance Recovery for a Theft