Ansel is interested in environmental preservation. To that end, he has purchased vast amounts of land and kept it as undeveloped as possible. Recently, Ansel purchased 200 acres of land in Ohio at a cost of $2,000,000.The heavily forested area is home to the rare wood snipe. Unfortunately, in a mix-up over property lines, a logging company cut down and sold many trees that were on Ansel's land. The loggers also destroyed the main nesting areas of the wood snipe. Ansel sued the logging company and recovered a total of $1,200,000, representing the diminution in value of the land and the conversion of the lumber. How much, if any, of this recovery is gross income to Ansel?

Answer rating: 100% (QA)

In this scenario a portion of the 1200000 Ansel recovered will be considered gross income while the ... View the full answer