I:12-37 Involuntary Conversion of Real Property. On April 27, 2022, an office building owned by the Ava James Corporation, an offshore drilling company that is a calendar-year taxpayer, is destroyed by a hurricane. The basis of the office building is $600,000, and the corporation receives $840,000 from the insurance company.

a. To defer the entire gain due to the involuntary conversion, what amount must the corporation pay for replacement property?

b. To defer the gain due to the involuntary conversion, by what date must the corporation replace the converted property?

c. If Ava James replaces the office building by purchasing a 900,000 gallon underground storage tank for $810,000, may it defer any of the gain due to the involuntary conversion?

d. Will answers to Parts b and c change if the office building had been condemned by the state? Explain.