The Timmins Corporation has three acres of land on which its warehouse and offices are located.The state condemned two acres of the land for an extension of a highway frontage road.The strip that was condemned took the warehouse and parking area, leaving only the small office building.The corporation received

$3,000,000 for the property that was condemned and $1,000,000 in severance damages due to the separation of the office property from the rest of the facility.The warehouse and parking area have a basis of $425,000 and the office area a basis of

$250,000.Timmins plans to replace the entire warehouse and office facility.

AppendixLO1