On October 18 of last year, a flood washed away heavy construction equipment owned by Company K. The adjusted tax basis in the equipment was $416,000. On December 8 of last year, Company K received a $480,000 reimbursement from its insurance company. On April 8 this year, Company k purchased new construction equipment for $450,000. Required: a. How much of last year's gain must Company K recognize because of the involuntary disposition of the equipment? b. What is Company K's tax basis in the new equipment? c. How would your answers change if Company k paid $492,000 for the new equipment? Complete this question by entering your answers in the tabs below. Required A Required B Required C How much of last year's gain must Company K recognize because of the involuntary disposition of the equipment? Recognized gain On October 18 of last year, a flood washed away heavy construction equipment owned by Company K. The adjusted tax basis in the equipment was $416,000. On December 8 of last year, Company K received a $480,000 reimbursement from its insurance company. On April 8 this year, Company k purchased new construction equipment for $450,000. Required: a. How much of last year's gain must Company k recognize because of the involuntary disposition of the equipment? b. What is Company K's tax basis in the new equipment? c. How would your answers change if Company k paid $492,000 for the new equipment? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is Company K's tax basis in the new equipment? Tax basis On October 18 of last year, a flood washed away heavy construction equipment owned by Company K. The adjusted tax basis in the equipment was $416,000. On December 8 of last year, Company K received a $480,000 reimbursement from its insurance company. On April 8 this year, Company k purchased new construction equipment for $450,000. Required: a. How much of last year's gain must Company K recognize because of the involuntary disposition of the equipment? b. What is Company K's tax basis in the new equipment? c. How would your answers change if Company k paid $492,000 for the new equipment? Complete this question by entering your answers in the tabs below. Required A Required B Required c How would your answers change if Company K paid $492,000 for the new equipment? Amount Recognized gain Tax basis