On July 2, 2019, a tornado destroyed an asset owned by Leigh Inc., a calendar year taxpayer. Leigh's adjusted tax basis in the asset was $22,700, and the reimbursement from its property insurance company was $35,000. If Leigh wants to defer recognizing its $12,300 realized gain, it must replace the asset no later than December 31, 2020.
Answer the following statement true (T) or false (F)
False
Leigh has until December 31, 2021, to replace the asset.
Business
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What will be an ideal response?
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What will be an ideal response?
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