QUESTION 3 A taxpayer, James, had a building destroyed by hurricane. His adjusted basis was 100,000. He received insurance proceeds of $150,000. He spent $145,000 of the proceeds on a qualified replacement property. What is the amount of his recognized gain and what is his basis in the replacement property? $0 recognized gain, $145,000 basis in replacement property. $5,000 recognized gain, $100,000 basis in replacement property. $5,000 recognized gain, $145,000 basis in replacement property. $50,000 recognized gain, $100,000 basis in replacement property. QUESTION 4 In 2019, Mitchell Corporation incurred a net capital loss in the amount of $25,000. Mitchell had the following net capital gains in the previous years: 2018 $7,000 2017 $2,000 2016 $5,000 2015 $4,000 How much of the 2019 net capital loss will Mitchell carry over to 2020? 50 $7,000 $11,000 $25,000 QUESTIONS Save A Click Save and Submit to save and submit. Click Save All Answers to save all ans