Elizabeth Smart’s personal residence is condemned as part of the urbanization enlightened project. Her adjusted basis of the residence is $485,000. She receives condemnation proceeds of $465,000, and invests the proceeds in stocks and bonds. (a): Calculate Elizabeth’s realized and recognized gain or loss. (b): If the condemnation proceeds are $510,000, what is Elizabeth’s realized and recognized gain or loss? (c): What are Elizabeth’s realized and recognized gain or loss in (a) above if the house was a rental property?