Gem Company's manufacturing facility was destroyed by a flood. The facility's adjusted basis was $665,000,...
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Gem Company's manufacturing facility was destroyed by a flood. The facility's adjusted basis was $665,000, and Gem received an $850,000 insurance reimbursement. Within 18 months of the flood, Gem rebuilt the facility at a total cost of $975,000. Which is Gem's basis in the new facility?
A) 790,000
B) 850,000
C) 665,000
D) 1,160,000
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