微信扫一扫
实时资讯全掌握
| Caravan Corporation owned a warehouse located in the path of a proposed highway. Caravan bought the land in year 1 for $10,000. That same year, it built the warehouse at a cost of $50,000. In year 23, after prolonged litigation, the state exercised its right of eminent domain and condemned the property, awarding Caravan $200,000. Depreciation accumulated to the date of the award was $45,000. On its year 23 federal income tax return, Caravan elected not to recognize the gain since replacement property was bought for $225,000. For income statement purposes, Caravan should recognize a gain in year 23 of A. $0 B. $185,000 C. $200,000 D. $160,000 |