Sarah's Building Is Condemned by the State on October 19

question 103

Essay

Sarah's building is condemned by the state on October 19, 2017. The building has a basis of $400,000 and Sarah receives $600,000 from the state on February 10, 2018. On January 20, 2019, Sarah purchases qualifying replacement property for $565,000. What is Sarah's realized and recognized gain or loss on the condemnation?

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Definitions:

Land Surveying

The measurement and mapping of land boundaries, topography, and features to determine property lines and design construction projects.

Westward Expansion

The 19th-century movement of settlers into the American West, driven by the belief in Manifest Destiny and leading to significant territorial acquisitions and conflicts.

Virginia Plan

A suggestion made by delegates from Virginia for a two-chambered legislative body while creating the United States Constitution in 1787.

Edmund Randolph

An American attorney and politician who served as the first U.S. Attorney General and the seventh Governor of Virginia.