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Joan Smarts personal residence is condemned as part of the urbanization enlightened project. Her adjusted basis of the residence is $490,000. She receives condemnation proceeds
Joan Smarts personal residence is condemned as part of the urbanization enlightened project. Her adjusted basis of the residence is $490,000. She receives condemnation proceeds of $470,000 and invests the proceeds in stocks and bonds. (a): Calculate Joans realized and recognized gain or loss. (b): If the condemnation proceeds are $515,000, what is Joans realized and recognized gain or loss? (c): What is Joans realized and recognized gain or loss in (a) above if the house was a rental property?
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