hey Claudia, i spent a ton of time last night trying to figure out that DRS sim. i wasn't able to look at any explanations, so here's my best guess (from memory, i can't look at it right now).
for the van, if you look on the depreciation worksheet, when the old van was disposed, it had an excess taxable basis over accumulated depreciation. and i guess you add that to the net of what you paid for the new van
for the wayside property, it has to do with involuntary conversions. you don't recognize a gain to the extent you reinvested it, and the new basis would be equal to the basis of the old property plus the excess investment over the gain from conversion.
the numbers were something like:
63k basis old property
70k selling price old property (involuntary)
72k purchase price replacement property
so the new basis would be $65k i think
sorry hope that's not confusing. not sure if i actually understand it correctly haha. any way you could post the roger explanation?
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