Taxpayer's property, a warehouse, with an adjusted basis of $50,000, is condemned (taken by eminent domain) by the city on March 21, 2018. Taxpayer is awarded $120,000 as compensation in May of the same year. Taxpayer uses the calendar year.

True or False

1. The taxpayer's realized gain is $70,000

2. The latest date that qualifying replacement property can be acquired is Dec 31, 2020

3. Taxpayer reinvests $80,000 in good replacement property on April 5, 2020. The taxpayer's recognized gain is $40,000 (the amount of the reinvestment deficiency)