Amount of realized gain and recognized gain


Reid had a business building destroyed in a fire. the old building was purchased for $375,000 and $60,000 of depreciation deductions had been taken. although the old building had a fair market value of $425,000 at the time of the fire, his insurance proceeds were limited to $400,000. reid found qualified replacement property which is acquired six months later for $390,000. What is the amount of reid's realized gain and recognized gain?

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Accounting Basics: Amount of realized gain and recognized gain
Reference No:- TGS042707

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