Alvin owned a building situated in Kansas that he rented to a local business. Last year a tornado hit the property and totally destroyed it. This year, Alvin received an insurance settlement of $450,000. Alvin had initially purchased the building for $350,000 and had claimed a total of $100,000 of depreciation deductions. Alvin built a new building at a cost of $400,000. Find what is Alvin's realized gain on this transaction?
Evaluate what is Alvin's recognized gain (loss) on this transaction?
Find what is Alvin's tax basis in his new building?