On april 27, 2016 an office building owned by the Ava James Corp, an offshore drilling company that is calendar-year-tax payer, is destroyed in a hurricane. The basis of the office buliding is $600,000, and the corporation receives $840,000 from the insurance company.

A. To defer the entire gain due to the involuntary conversion, what amount must the corporation pay for treplacement property?

B. To defer the gain due to the involuntary conversion, by what date must the corporation replace the converted property?

C. If Ava James replaces the office building by purchasing a 900,000 gallon storage tannk for $810,000, may it defer any of the gain due to the involuntary conversion?

D. Will answers to parts b&c chnage if the office building had been condemned by the state? Explain