[ANSWERED] Sec. 1231 Transactions. During the current year, Sean’s office building is destroyed by fire. After.

Sec. 1231 Transactions. During the current year, Sean’s
office building is destroyed by fire. After collecting the insurance proceeds,
Sean has a $50,000 recognized gain. The building was acquired in 1998, and the
straight -line method of depreciation has been used. He does not plan to
acquire a replacement building. In addition to the gain on the building,
consider the following independent cases and determine his total net capital
gain. For each case, include the $50,000 casualty gain described above.
a. Land used in his trade or business and held more than a
year is condemned by the state. The recognized gain is $60,000.
b. Assume the same facts as in Part a, except the
condemnation results in a $60,000 loss.
c. An apartment building used as residential rental property
and held more than one year is destroyed by a sudden, unexpected mudslide. The
building is not insured, and the loss amounts to $200,000.