Mia owns a warehouse that has a cost basis to her of $80,000. The city condemns the
Question:
Mia owns a warehouse that has a cost basis to her of $80,000. The city condemns the warehouse to make room for a new fire station. It pays Mia $400,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement. What is her recognized gain if the new property cost:
a. $280,000?
b. $444,000?
c. $80,000?
d. What, if any, is the justification for deferring the recognition of gain on the involuntary conversion?
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a Mias realized gain from the condemnation is 320000 400000 amount ...View the full answer
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Related Book For 
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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