LO.3 What are the maximum postponed gain or loss and the basis for the replacement property for the following involuntary conversions?

Property Type of Conversion Amount Realized Adjusted Basis Amount Reinvested

a. Drugstore (business) Casualty $160,000 $130,000 $110,000

b. Apartments (investment) Condemned 100,000 125,000 175,000

c. Grocery store (business) Casualty 400,000 300,000 450,000

d. Residence (personal) Casualty 16,000 18,000 17,000

e. Vacant lot (investment) Condemned 240,000 160,000 220,000

f. Residence (personal) Casualty 20,000 18,000 19,000 g. Residence (personal) Condemned 18,000 20,000 26,000 h. Apartments (investment) Condemned 150,000 100,000 200,000