Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa

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Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa receives insurance proceeds of $410,000 for the loss. Teresa reinvests $420,000 in a replacement plant within 2 years of receiving the insurance proceeds.

If an amount is zero, enter "0".

a. Calculate Teresa's recognized gain if she elects to utilize the involuntary conversion provision. $

b. Calculate Teresa's basis in the new plant

Posted Date: May 18, 2024 10:14 PM

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Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa

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