Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $318,200, and Teresa receives insurance proceeds of $477,300 for the loss. Teresa reinvests $501,165 in a...

Extracted text: Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $318,200, and Teresa receives insurance proceeds of $477,300 for the loss. Teresa reinvests $501,165 in a replacement plant within 2 years of receiving the insurance proceeds. If an amount is zero, enter "0". a. Calculate Teresa's recognized gain if she elects to utilize the involuntary conversion provision. $ b. Calculate Teresa's basis in the new plant.