Dave, a cash method taxpayer, owned a bookstore in Eureka, California, which he

bought for $ $275,000$ on $3-28-2005.$ Early in $2006,$ upon a realtor$$s advice Dave

added an elevator on the property for $ $30,000.$ Dave operated the store since

$2006,$ took $ $70,000$ depreciation on the store and fixtures $($up to the sale$),$ and

intended to continue, but, the City of Eureka, along with Humboldt County, recently

became aware of the bookstore building$$s historic importance to northern

California, and decided to buy the building and turn it into a public museum and

historic site. Dave was then awarded just compensation, and, upon closing of the

sale, Eureka city council wrote a check to Dave for $ $657,000$ on $2-2-2023,$ and Dave

used this money to buy $($on $7-14-2023)$ a brewery across the street from the

bookstore building $($the price for the brewery building was $ $616,000$ and included

all fixtures$).$ How much gain on the sale of his bookstore building must Dave

recognize, in $2023?$ What will be the basis in the brewery building for Dave? The

payment was not a severance payment in any respect, and assume proper and

timely elections were made