Reid had a business building destroyed in a fire. The old building was purchased for $375,550, and $58,900 of depreciation deductions had been taken. Although the old building had a fair market value of $424,945 at the time of the fire, his insurance proceeds were limited to $398,900. Reid found qualified replacement property that he acquired six months later for $389,450. What is the amount of Reid's realized gain and recognized gain?

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The Answer of Reid had a business building destroyed in a fire. The old building was purchased for $375,550, and $58,900 of depreciation deductions had been taken. Although the old building had a fair market value of $424,945 at the time of the fire, his insurance proceeds were limited to $398,900. Reid found qualified replacement property that he acquired six months later for $389,450. What is the amount of Reid's realized gain and recognized gain?

Reid Had a Business Building Destroyed in a Fire