Sam's store is destroyed in 2018 as a result of a flood. The store has an adjusted basis of $70,000, and Sam receives insurance proceeds of $150,000 on the loss. Sam invests $135,000 in a replacement store in 2019.

1. Calculate Sam's recognized gain, assuming an election under the involuntary conversion provision is made. $

2. Calculate Sam's basis in the replacement store. $

Answer rating: 100% (QA)

1 Sams recognised gain 150000 70000 80000 But the recognition of this gain can be ... View the full answer