22) 22) Pierce, a single taxpayer, sold his home this year. He had owned and lived in the house for 10 years. Pierce signed a contract on March 4 to sell his home. Sales price Selling expenses Replaced and paid for a broken window on March 2 Basis of old home before repairs and improvements $600,000 15,000 800 310,000 Based on these facts, what is the amount of his recognized gain? A) $25,000 B) $40,000 C) $275,000 D) $0 23) 23) Alex owns an office building which the state condemns on January 15, 2021. Alex receives the condemnation award on April 1, 2021. In order to qualify for nonrecognition of gain on this involuntary conversion, what is the last date for Alex to acquire qualified replacement property? A) December 31, 2023 B) December 31, 2024 C) April 1, 2023 D) April 1, 2024 24) 24) Ella needs to move her business to a larger facility. She projects a large realized gain on the sale of the old building and prefers not to pay tax on the gain because the sales proceeds are needed to finance the purchase of the new building. In the circumstances, a direct two- or three-party like-kind exchange is not feasible. Ella's sale can still qualify for like-kind treatment if she arranges an appropriate nonsimultaneous exchange. Among other criteria, after the transfer of the old building, the replacement property must be A) identified within 90 days and received by year-end. B) identified within 60 days and received within 180 days. C) identified within 45 days and received within 180 days. D) identified within 45 days and received by year-end. 25) 25) Alex, a commercial fisherman, owns a fishing boat with a $1,600,000 basis. The boat is destroyed in a hurricane, and Alex collects $2,000,000 from the insurance company. He purchases another boat for $1,550,000. What is the amount of the gain recognized on the transaction? A) $400,000 B) $450,000 C) $0 D) $50,000 26) 26) Kuda owns a parcel of land she acquired on June 1, 2012, as an investment. She exchanges the land on July 5, 2021, for a storage building to be used in her business and marketable securities to be held as an investment. The marketable securities' holding period begins on A) July 5, 2021 B) July 6, 2021 C) June 1, 2012 D) June 2, 2012 27) 27) Lana owned a house used as a rental property for three years. During this rental period, she took $60,000 of depreciation deductions. Lana moved into the house and has used it as her principal residence for the past two years. Lana has just sold the house and realized a $200,000 gain. She will recognize gain of A) $144,000. B) $60,000. C) $0. D) $200,000. a