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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
84.            Â
Edith’s warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2015. Edith, a calendar year taxpayer, receives insurance proceeds  of
$525,000 in January 2016. 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 2016.
b.    Acquires a new warehouse for $500,000 in January 2016.
c.     Does not acquire replacement property.
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