Jessica's office building is destroyed by fire on November 15, 2016. The adjusted basis of the building

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Jessica's office building is destroyed by fire on November 15, 2016. The adjusted basis of the building is $410,000. She receives insurance proceeds of $550,000 on December 12, 2016.
a. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $550,000.
b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2016 for $495,000.
c. What is her basis for the replacement property in (a) and in (b)?
d. Calculate Jessica's realized and recognized gain or loss if she does not invest in replacement property.
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Fundamentals Of Taxation 2017

ISBN: 9781259752735

10th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

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