A tornado demolished several delivery vans owned for three years by Wadham Company. Wadham's adjusted basis in the vans was $28,400, and Wadham paid $90,000 to purchase new vans. Wadham received a $25,000 settlement from its casualty insurance company. Consequently, Wadham recognizes:

A. $65,000 ordinary loss
B. $3,400 Section 1231 loss
C. $65,000 Section 1231 loss
D. None of the above


Answer: D

Business

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