Sidney Southern owned a restaurant which was condemned on November 20, 2008. On January 15, 2009, he received a condemnation award of $280,000. The adjusted basis of his restaurant was $120,000. He purchased another restaurant on March 17, 2009, for $300,000.
A. What is Sidney's lowest recognized gain or loss? What is his basis in the restaurant?
B. What would be the answer to A if the replacement cost was $240,000?
C. What is the last possible date on which Sidney could have purchased qualified replacement property?
D. What is the answer to C if the restaurant had been destroyed by fire instead of being condemned?