LO.1, 2 Hubert’s personal residence is condemned as part of an urban renewal project.

His adjusted basis for the residence is $325,000. He receives condemnation proceeds of

$300,000 and invests the proceeds in stock.

a. Calculate Hubert’s realized and recognized gain or loss.

b. If the condemnation proceeds are $355,000, what are Hubert’s realized and recognized gain or loss?

c. What are Hubert’s realized and recognized gain or loss in

(a) if the house was rental property?