Exercise $13-37(.7)$

On June $5,2023,$ Brown, Inc, a calendar year taxpayer, receives cash of $$750,000$ from the county upon condemnation of its warehouse building $($adjusted basis of $$500,000$ and fair market value of $$750,000).$

a$.$ Select either "True" or "False" for each of the following regarding what must Brown do to qualify for $51033$ postponement of gain treatment.

Elect $51033$ postponement of gain treatment

Acquire qualifying replacement property costing at least $$750,000$

Acquire the qualifying property no later than December $31,2026$

Acquire qualifying replacement property costing at least $$500,000$

b$.$ Complete the statements below regarding what must Brown do to qualify for $1033$ postponement if the adjusted basis was instead $$795,000.$

Because Brown has a realized on the condemnation of business property, $q,2.$ In this case, $1033q,-$ the normal rules of recognition. Therefore, Brown has a realized $q,-$of: $$ of which $ is recognized.