eBook

Problem $14-36($LO$.1,2)$

Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $$480,000.$

He receives condemnation proceeds of $$460,000$ and invests the proceeds in stocks and bonds.

If an amount is zero, enter $"0".$

a$.$ Calculate Yancy's realized and recognized gain or loss.

Yancy's realized

$,$ and Yancy's recognized

is $

b$.$ If the condemnation proceeds are $$505,000,$ what are Yancy's realized and recognized gain or loss?

Yancy's realized

$,$ and Yancy's recognized

is $

c$.$ Assume the house is rental property. Yancy's adjusted basis is $$480,000$ and he receives condemnation proceeds of $$460,000$ and invests the proceeds in stock. What are Yancy's realized and recognized gain or loss?

Yancy's realized

$,$ and Yancy's recognized

is $