3. 15 Points: Arthur Austen's investment land has an adjusted basis of $110,000. This year, the federal government for the construction of a new highway condemns one-half of it. The authorities replaced the condemned portion of his property with other qualified property with a fmv of $150,000 and also gave him $75,000 of severance damages. What are Arthur's realized and recognized gains on the condemnation and severance, and what is his basis in the remaining old property? If Arthur sells the replacement property for $225,000, what is his realized and recognized gain?

3. 15 Points: Arthur Austen's investment land has an adjusted basis of $110,000. This year, the federal government for the construction of a new highway condemns one-half of it. The authorities replaced the condemned portion of his property with other qualified property with a fmv of $150,000 and also gave him $75,000 of severance damages. What are Arthur's realized and recognized gains on the condemnation and severance, and what is his basis in the remaining old property? If Arthur sells the replacement property for $225,000, what is his realized and recognized gain