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Reid had a business building destroyed in a fire. The old building was purchased for $375,700, and $58,600 of depreciation deductions had been taken. Although the old building had a fair market value of $424,930 at the time of the fire, his insurance proceeds were limited to $398,600. Reid found qualified replacement property that he acquired six months later for $389,300. What is the amount of Reid's realized gain and recognized gain?
Schema
Cognitive frameworks or concepts that help individuals organize and interpret information, based on experiences and prior knowledge.
Sidewalk
A paved path for pedestrians at the side of a road.
Schema
Cognitive structures that help individuals organize and interpret information, based on their accumulated knowledge and experiences.
Mathematics
The abstract science of number, quantity, and space, either as abstract concepts (pure mathematics) or as applied to other disciplines such as physics and engineering (applied mathematics).
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