Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $572,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement. If amount is zero, enter "0". a. What is her recognized gain if the new property cost is $400,400? $? b. What is her recognized gain if the new property cost is $629,200? $? c. What is her recognized gain if the new property cost is $114,400? $?
Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $572,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement. If amount is zero, enter "0". a. What is her recognized gain if the new property cost is $400,400? $? b. What is her recognized gain if the new property cost is $629,200? $? c. What is her recognized gain if the new property cost is $114,400? $?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $572,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement.
If amount is zero, enter "0".
a. What is her recognized gain if the new property cost is $400,400?
$?
b. What is her recognized gain if the new property cost is $629,200?
$?
c. What is her recognized gain if the new property cost is $114,400?
$?
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