On June 5, 2017, Brown, Inc., a calendar year taxpayer, receives cash of $883,500 from the county upon condemnation of its warehouse building (adjusted basis of $618,450 and fair market value of $883,500).

a. Select either "True" or "False" for each of the following regarding what must Brown do to qualify for 1033 postponement of gain treatment.

	Elect 1033 postponement of gain treatment
	Acquire qualifying replacement property costing at least $883,500
	Acquire the qualifying property no later than December 31, 2019
	Acquire qualifying replacement property costing at least $618,450

b. Complete the statements below regarding what must Brown do to qualify for 1033 postponement if the adjusted basis was instead $1,060,200.

Because Brown has a realized on the condemnation of business property, . In this case, 1033 the normal rules for loss recognition. Therefore, Brown has a realized loss of $ and a recognized loss of $.