Vandals destroyed a business asset owned by L&L Company. L&L's adjusted tax basis in the asset was $60,800, and the reimbursement from its property insurance company was $90,000. L&L must pay at least $60,800 for a replacement asset in order to defer gain recognition on the involuntary conversion.
Answer the following statement true (T) or false (F)
False
L&L must pay at least $90,000 for replacement property, in order to obtain gain deferral for the entire $29,200.
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Indicate whether the statement is true or false
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