A warehouse owned by M&S (a partnership) and used in its business (i.e., to store inventory) is being condemned by the city to provide a right-of-way for a highway. The warehouse has appreciated by $180,000 based on an estimate of fair market value. In the negotiations, the city is offering $35,000 less than what M&S believes the property is worth. Alan, a real estate broker, has offered to purchase the property for $20,000 more than the city's offer. The partnership plans to invest the proceeds it will receive in an office building that it will lease to various tenants. a. Help M&S by classifying each of the following as a "Relevant tax issue" or "Not a tax issue". Can Mas defer the realized gain or loss on the disposition of the warehouse? . Can the transaction be structured so it will qualify as an involuntary conversion? Will replacing the warehouse with the office building qualify as like-kind property under 1031? Has M&S had other property condemned within the last 12 months? b. Would the answer above change if M&S's warehouse was property held for investment rather than being used in its business? Can M&S defer the realized gain or loss on the disposition of the warehouse? Can the transaction be structured so it will qualify as an involuntary conversion? Will replacing the warehouse with the office building qualify as like-kind property under s 1031? Has M&S had other property condemned within the last 12 months? Relevant tax issue Not a tax issue