Problem $13-83($LO$.7,9)$

Wanda, a calendar year taxpayer, owned a building $($adjusted basis of $$250,000)$ in which she operated a bakery that was destroyed by fire in December $2024.$ She receives insurance proceeds of $$290,000$ for the building the following March. Wanda is considering two options regarding the investment of the insurance proceeds. First, she could purchase a local building $($suitable for a bakery$)$ that is for sale for $$275,000.$ Second, she could buy a new home for $$290,000$ and go back to college and finish her degree.

a$.$ To minimize her tax liability, which of these alternatives should Wanda choose?

Option $1$ results in a recognized gain of $ and Option $2$ results in a recognized gain of $ $-$ Therefore, Wanda should select

b$.$ What is the latest date on which Wanda can replace the involuntarily converted property to qualify for $1033?$

c$.$ What is the latest date on which Wanda can replace the involuntarily converted property to qualify for $1033$ if the involuntary conversion is a condemnation?