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Several Years Ago,Logan Purchased Extra Grazing Land for His Ranch

question 63

Essay

Several years ago,Logan purchased extra grazing land for his ranch at a cost of $240,000.In 2014,the land is condemned by the state for development as a highway maintenance depot.Under the condemnation award,Logan receives $600,000 for the land.Within the same year,he replaces the property with other grazing land.What is Logan's tax situation if the replacement land cost:
a.$210,000?
b.$360,000?
c.$630,000?
d.Why?


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An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

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A principle advocating for minimal intervention by the government in the affairs of individuals and society, emphasizing freedom and limiting the scope of governmental power.

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Conditions where societies enjoy stability, safety from violence, conflict, and fear, allowing for the development and growth of individuals and communities.

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