The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis of the building was $80,000, Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss. It cost her $152,000 to rebuild the store in 2015.
a. Calculate Donna's recognized gain, assuming an election under the involuntary conversion provision is made.$__________
b. Calculate Donna's basis in the replacement building.$__________

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The Answer of The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis of the building was $80,000, Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss. It cost her $152,000 to rebuild the store in 2015.
a. Calculate Donna's recognized gain, assuming an election under the involuntary conversion provision is made.$__________
b. Calculate Donna's basis in the replacement building.$__________

The Office Building Donna Owned and Used for Her Desk-Top