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Problem 8-21 (Algorithmic) Involuntary Conversions (LO 8.12) Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $279,000, and Teresa receives

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Problem 8-21 (Algorithmic) Involuntary Conversions (LO 8.12) Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $279,000, and Teresa receives insurance proceeds of $418,500 for the loss. Teresa reinvests $439,425 in a replacement plant within 2 years of receiving the insurance proceeds. If an amount is zero, enter "0". a. Calculate Teresa's recognized gain if she elects to utilize the involuntary conversion provision. b. Calculate Teresa's basis the new plant

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