The city of greenville condemned 300 acres of kaylas, Ask an Expert

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The City of Greenville condemned 300 acres of Kayla's farmland. Kayla's land was worth $250,000 and her basis was $62,500. In payment to Kayla, the city gave Kayla 500 acres of similar land. An appraisal indicated that the land Kayla received was worth $265,000. What is Kayla's recognized gain or loss on the involuntary conversion and what is her basis in the land received?

a) $0 gain and $62,500 basis
b) $0 gain and $262,500 basis
c) $15,000 gain and 265,000 basis
d) 202,500 gain and $265,000 basis

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9405858

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