Howard’s roadside vegetable stand (adjusted basis of $275,000) is destroyed by a tractor-trailer accident. he receives insurance proceeds of $240,000 ($300,000 fair market value − $60,000 coinsurance). howard immediately uses the proceeds plus additional cash of $45,000 to build another roadside vegetable stand at the same location. what are the tax consequences to howard?

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.