Jessicas office building is destroyed by fire on November 15, 2020. The adjusted basis of the building is $410,000. She receives insurance proceeds of $550,000 on December 12, 2020.

a. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2020 for $550,000.

b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2020 for $495,000.

c. What is her basis for the replacement property in (a) and in (b)?

d. Calculate Jessicas realized and recognized gain or loss if she does not invest in replacement property.

Use 2020 Tax information