Camilos property, with an adjusted basis of $255,400, is condemned by the state. Camilo receives property with a fair market value of $293,710 as compensation for the property taken.

a. What is Camilos realized and recognized gain?

b. What is the basis of the replacement property

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The accrual basis taxpayer sold land for $100,000 on December 31, 2017. He did not collect the $100,000 until January 2, 2018. The land was held as an investment.

a.If the accrual basis taxpayer's basis in the land was $60,000, the gain must be reported in 2017.

b.The accrual basis taxpayer must recognize the gain or loss in the year of sale.

c.If the accrual basis taxpayer's basis in the land was $60,000, the gain must be reported in 2018, unless the taxpayer elects to not use the installment method.

d.If the accrual basis taxpayer's basis in the land was $110,000, the loss would be recognized in 2018.

e.None of these choices are correct.