Determine the tax consequences

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Reference no: EM131926307

Identify the tax issue(s) suggested by the following situations and state each issue in the form of a question.

List as many tax research issues as you can to determine the tax consequences of the following transactions.

Do NOT attempt to answer any of the questions you raise.

Maddison, Inc. owns 200 acres of land on which it grows flowers for sale to local nurseries.

The adjusted basis in the land is $30,000. The state issues condemnation proceeds of $20,000 for 10 acres of the land on which a new freeway will be built.

The state also pays an additional $30,000 for the harmful effects that the increased auto exhaust might have on the flowers.

Reference no: EM131926307

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