What are the recognized gain or loss

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Arkview, Inc.'s warehouse, which has an adjusted basis of $380,000 and a fair market value of $490,000, is condemned by an agency of the Federal Government to make way for a highway interchange. The initial condemnation offer is $425,000. After substantial negotiations, the agency agrees to transfer to Parkview a surplus warehouse that it believes is worth $490,000. Parkview is a calendar year taxpayer. The condemnation and related asset transfer occurred during September 2013.

What are the recognized gain or loss and the basis of the replacement warehouse if Parkview's objective is to recognize as much gain as possible? Advise Parkview regarding what it needs to do by what date to achieve its objective.

What are the recognized gain or loss and the basis of the replacement warehouse if Parkview's objective is to recognize as much gain as possible?

Advise Parkview regarding what it needs to do by what date to achieve its objective.

Reference no: EM13495241

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