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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 $363,000, and Teresa receives
Problem 8-21 (Algorithmic) Involuntary Conversions (LO 8.12) Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $363,000, and Teresa receives insurance proceeds of $544,500 for the loss. Teresa reinvests $571,725 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 in the new plant
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