Sally owned a clothing store which was condemned on November 25, 2015. On January 7, 2016, she received a condemnation award of $280,000. The adjusted basisof the clothing store was $120,000. She purchased another clothing store on March 18, 2016 for $300,000.

1..What is Sallys recognized gain or loss? _______________________

What is Sallys basis in the clothing store? _____

_

What is the latest date that Sally can qualify for nonrecognition treatment? ____________________

4. What is the answer to question 3 if the clothing store had been destroyed by fire instead of being condemned?