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Joseph's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $337,800 and Joseph receives insurance proceeds of $506,700 for the loss.
Joseph's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $337,800 and Joseph receives insurance proceeds of $506,700 for the loss. Joseph reinvests $532,035 in a replacement plant within 2 years of receiving the insurance proceeds.
Calculate Joseph's basis in the new plant.
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