Daisy's warehouse is destroyed by a tornado. The warehouse has an adjusted basis of $130,000 when destroyed. Daisy receives an insurance reimbursement check for $150,000 and immediately reinvests $120,000 of the proceeds in a new warehouse. What are Daisy's recognized gain or loss) and her basis in the replacement warehouse?

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The Answer of Daisy's warehouse is destroyed by a tornado. The warehouse has an adjusted basis of $130,000 when destroyed. Daisy receives an insurance reimbursement check for $150,000 and immediately reinvests $120,000 of the proceeds in a new warehouse. What are Daisy's recognized gain or loss) and her basis in the replacement warehouse?

Daisy's Warehouse Is Destroyed by a Tornado