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A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5, 20x3. On May 15, 20x3, the insurance company paid
A barn with an adjusted basis of $125,000 was destroyed by a tornado on March 5, 20x3. On May 15, 20x3, the insurance company paid the owner $150,000. The owner reinvested $170,000 in another barn. What is the basis of the new barn if non-recognition of gain from an involuntary conversion is elected?
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