11. LO.1, 2, 6 Yancy’s personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $480,000. He receives condemnation proceeds of $460,000 and invests the proceeds in stocks and bonds.

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

b. If the condemnation proceeds are $505,000, what are Yancy’s realized and recognized gain or loss?

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

(a) if the house was rental property?