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Mr. Holt's vacation home was completely destroyed by a fire in July Year 1. In December Year 1, Holt's insurance company paid him his basis

image text in transcribed Mr. Holt's vacation home was completely destroyed by a fire in July Year 1. In December Year 1, Holt's insurance company paid him his basis in the home plus $12,000. In order to postpone recognizing the gain, Mr. Holt must acquire replacement property by the end of A December 31, Year 3. B July Year 4. CJuly Year 3. D December 31, Year 4

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