Thieves stole computer equipment used by Ms.James in her small business.Ms.James' tax basis in the equipment was zero.One month after the theft,she received a $17,600 reimbursement from her casualty insurance company and used $14,850 to replace the computer equipment.She used the $2,750 remaining reimbursement to purchase a new desk for her office.Which of the following statements is false?
A)Ms.James must recognize a $2,750 gain on the involuntary conversion.
B)Ms.James's basis in her new computer equipment is -0-.
C)Ms.James's basis in her new desk is $2,750.
D)None of the above is false.

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The Answer of Thieves stole computer equipment used by Ms.James in her small business.Ms.James' tax basis in the equipment was zero.One month after the theft,she received a $17,600 reimbursement from her casualty insurance company and used $14,850 to replace the computer equipment.She used the $2,750 remaining reimbursement to purchase a new desk for her office.Which of the following statements is false?
A)Ms.James must recognize a $2,750 gain on the involuntary conversion.
B)Ms.James's basis in her new computer equipment is -0-.
C)Ms.James's basis in her new desk is $2,750.
D)None of the above is false.

Thieves Stole Computer Equipment Used by Ms