Homer Corporation's office building was destroyed by fire. Homer collected insurance of $250,000, which equaled the building's basis, and $150,000 for profits lost during the time the company was rebuilding the office building. What is the amount taxable this year?
A) $0
B) $150,000
C) $250,000
D) $400,000
B) $150,000
Only the $150,000 to cover lost profits is taxable.
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