Several years ago,Logan purchased extra grazing land for his ranch at a cost of $240,000.In 2013,the land is condemned by the state for development as a highway maintenance depot.Under the condemnation award,Logan receives $600,000 for the land.Within the same year,he replaces the property with other grazing land.What is Logan's tax situation if the replacement land cost:
$\begin{array}{ll}
\text { a. } & \$ 210,000 ? \
\text { b. } & \$ 360,000 ? \
\text { c. } & \$ 630,000 ? \
\text { d. } & \text { Why? }
\end{array}$

Question

Several years ago,Logan purchased extra grazing land for his ranch at a cost of $240,000.In 2013,the land is condemned by the state for development as a highway maintenance depot.Under the condemnation award,Logan receives $600,000 for the land.Within the same year,he replaces the property with other grazing land.What is Logan's tax situation if the replacement land cost:
 $\begin{array}{ll}
\text { a. } & \$ 210,000 ? \
\text { b. } & \$ 360,000 ? \
\text { c. } & \$ 630,000 ? \
\text { d. } & \text { Why? }
\end{array}$

Quizplus · Accepted Answer

The Answer of Several years ago,Logan purchased extra grazing land for his ranch at a cost of $240,000.In 2013,the land is condemned by the state for development as a highway maintenance depot.Under the condemnation award,Logan receives $600,000 for the land.Within the same year,he replaces the property with other grazing land.What is Logan's tax situation if the replacement land cost:
 $\begin{array}{ll}
\text { a. } & \$ 210,000 ? \
\text { b. } & \$ 360,000 ? \
\text { c. } & \$ 630,000 ? \
\text { d. } & \text { Why? }
\end{array}$

Several Years Ago,Logan Purchased Extra Grazing Land for His Ranch