Calculate Edith realized gain or loss

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Problem - Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2019. Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2020. Calculate Edith's realized gain or loss, recognized gain or loss, and basis for the replacement property if she:

a. Acquires a new warehouse for $550,000 in January 2020.

b. Acquires a new warehouse for $500,000 in January 2020.

c. Does not acquire replacement property.

Reference no: EM132670788

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