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Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2016. Edith,...

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Accounting

Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2016. Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2017. Calculate Edith's realized gain or loss, recognized gain or loss, and basis for the replacement property if she:

(a) Acquires a new warehouse for $550,000 in January 2017

(b) Acquires a new warehouse for $500,000 in January 2017

(c) Does not acquire replacement property

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