Richard's Business Is Condemned by the State on July 10,2016,as

question 59

Essay

Richard's business is condemned by the state on July 10,2016,as part of a plan to add a highway loop around the city.His adjusted basis in his business is $500,000.He receives condemnation proceeds of $610,000 on August 30,2016.He purchases another business for $575,000 on September 15,2016.
a.What is Richard's realized and recognized gain or loss?
b.What is Richard's basis in the new business?

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