The Office Building Donna Owned and Used for Her Desk-Top $\quad$

Essay

The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis of the building was $80,000, Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss. It cost her $152,000 to rebuild the store in the current year. a. Calculate Donna's recognized gain, assuming an election under the $\quad$$\quad$ $__
involuntary conversion provision is made.
b. Calculate Donna's basis in the replacement building. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $__