Mia owns a warehouse that has a cost basis of $234,400. The city condemns the warehouse to make room for a new fire station. It pays Mia $1,172,000 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 $820,400? $

b. What is her recognized gain if the new property cost is $1,289,200? $

c. What is her recognized gain if the new property cost is $234,400? $

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___________ (equity considerations/ social considerations/ wherewithal to pay concept) and the notion that the taxpayers economic position __________ (has/has not) changed.