ANSWER
A)
Amount realized |
406,220 |
Less: adjusted basis |
(42,760) |
Realized loss |
$(21,380) |
Recognized loss |
$0 |
No loss is recognized as there is a realized loss on the condemnation of a personal use asset.
B)
Amount realized |
446,842 |
Less: adjusted basis |
(42,760) |
Realized loss |
$19,242 |
Recognized loss |
$19,242 |
If no such similar property is acquired, it is possible to recognize a realized gain on the condemnation of a personal use asset.
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eBook Calculator Problem 7-11 (Algorithmic) (LO. 1, 2, 6) Yancy's personal residence is condemned as part...
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