Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis...
Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12 of the current year, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell's property is officially condemned, and he receives an award of $625,000. Because Mitchell's business was successful in the past, he would like to reopen the restaurant in a new location.
e. Suppose he invests the $625,000 condemnation proceeds in the stock market on June 30. What is Mitchell's recognized gain?
Mitchell's recognized gain is $. ?????
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