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

question 119

Essay

Several years ago,Lucas purchased extra grazing land for his ranch at a cost of $120,000.In 2012,the land is condemned by the state for development as a highway maintenance depot.Under the condemnation award,Lucas receives $300,000 for the land.Within the same year,he replaces the property with other grazing land.What is Lucas's tax situation if the replacement land cost:

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Definitions:

Indian Child Welfare Act

A federal law enacted in the United States to protect the best interests of Indian children and promote the stability and security of Indian tribes and families.

Tribal Authority

The power and influence held by leaders within indigenous or tribal societies, often rooted in tradition and communal consensus.

Dominant Culture

The set of cultural practices, beliefs, and values that are powerful or widespread enough to influence the collective behavior of a society or group.

Status

The relative social, professional, or other standing of someone or something.