Rebecca owned an office building with a basis of $5,000,000 that she leased to a software company. In 2022 the office building was destroyed by fire. Rebecca received $6,500,000 in insurance proceeds due to the fire. Six months later, she purchased another office building for $6,000,000 and leased it to an accounting firm. How much of a gain must Rebecca recognize as a result of these transactions? What is Rebecca's basis in the new office building?

Answer rating: 100% (QA)

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