Question -
Abigail's business property (located in Gaston County USA) was condemned by the proper local authorities. Immediately before the condemnation, the property had a fair market value of $400,000 and Abigail's adjusted basis in the property was $200,000. The local authorities replaced Abigail's condemned property with similar Gaston County property having a fair market value of $300,000. What is Abigail's realized gain or loss relating to these matters?
a. $0
b. Loss of $100,000
c. Gain of $100,000
d. Gain of $300,000
Assume the facts stated in the prior question. What is Abigail's recognized gain or loss relating to such matters?
a. $0
b. Loss of $100,000
c. Gain of $100,000
d. Gain of $300,000
Assume the facts stated in the prior two questions. What is Abigail's basis in the Gaston County property she received as a result of the condemnation (i.e., what is Abigail's basis in the new property)?
a. $0
b. $100,000
c. $200,000
d. $300,000