Richard's business is condemned by the state on July 10, 2015, as part of a plan to add a highway loop around the city. His adjusted basis in his business is $500,000. He receives condemnation proceeds of $610,000 on August 30, 2015. He purchases another business for $575,000 on September 15, 2015.
a. What is Richard's realized and recognized gain or loss?
b. What is Richard's basis in the new business?

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The Answer of Richard's business is condemned by the state on July 10, 2015, as part of a plan to add a highway loop around the city. His adjusted basis in his business is $500,000. He receives condemnation proceeds of $610,000 on August 30, 2015. He purchases another business for $575,000 on September 15, 2015.
a. What is Richard's realized and recognized gain or loss?
b. What is Richard's basis in the new business?

Richard's Business Is Condemned by the State on July 10