Question
On June 20th 2020, Brent was paid $600,000 from the municipality were he owned a building used in his business. The property was being seized
On June 20th 2020, Brent was paid $600,000 from the municipality were he owned a building used in his business. The property was being seized due to a railroad line which would need to cut directly across his property. His adjusted basis in the property is $374,000. How much must he reinvest at a minimum to avoid gain recognition and how long does he have to replace the property?
A. Reinvest $374,000 Latest Replacement Date: December 31, 2022
B. Reinvest $374,000 Latest Replacement Date: December 31, 2023
C. Reinvest $600,000 Latest Replacement Date: December 31, 2022
D. Reinvest $600,000 Latest Replacement Date: December 31, 2023
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Governmental And Nonprofit Accounting Theory And Practice
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
9th Edition
0132552728, 9780132552721
