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| David Price owned machinery which he had acquired in 2011 at a cost of $100,000. During 2013, the machinery was destroyed by fire. At that time it had an adjusted basis of $86,000. The insurance proceeds awarded to Price amounted to $125,000, and he immediately acquired a similar machine for $110,000. What should Price report as ordinary income resulting from the involuntary conversion for 2013? A. $39,000 B. $15,000 C. $14,000 D. $25,000 |