Calculate her realized and recognized gain or loss

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Question - Jessica's office building is destroyed by fire on November 15, 2019. The adjusted basis of the building is $390,000. She receives insurance proceeds of $557,500 on December 12, 2019.

Required -

Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2019 for $557,500.

Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2019 for $452,500.

What is her basis for the replacement property in (a) and in (b)?

Calculate Jessica's realized and recognized gain or loss if she does not invest in replacement property.

Reference no: EM133013967

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