Richard's Business Is Condemned by the State on July 10

Essay

Richard's business is condemned by the state on July 10, 2015, as part of a plan to add a highway loop around the city. His adjusted basis in his business is $500,000. He receives condemnation proceeds of $610,000 on August 30, 2015. He purchases another business for $575,000 on September 15, 2015.
a. What is Richard's realized and recognized gain or loss?
b. What is Richard's basis in the new business?