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Mia owns a warehouse that has a cost basis of $120,400. The city condemns the warehouse to make room for a new fire station.

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Mia owns a warehouse that has a cost basis of $120,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $602,000 for the property, its agreed-to fair market value. Shortly after the condemnation, Mia purchases another warehouse as a replacement. If amount is zero, enter "0". a. What is her recognized gain if the new property cost is $421,400? b. What is her recognized gain if the new property cost is $662,200? c. What is her recognized gain if the new property cost is $120,400? d. What, if any, is the justification for deferring the recognition of gain on the involuntary conversion? The involuntary conversion provision is justified under the changed. and the notion that the taxpayer's economic position

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