Susan Short's Office Building Is Destroyed in a fiRe

Multiple Choice

Susan Short's office building is destroyed in a fire. fte adjusted basis in the building is $200,000 and its fair market value is $350,000. fte insurance company reimburses Susan $330,000 for its loss, and she immediately purchases a new office building for $310,000. What is Susan's recognized gain and adjusted basis in the new office building?

A) $20,000 and $200,000, respectively.
B) $0 and $310,000, respectively.
C) $0 and $330,000, respectively.
D) $20,000 and $310,000, respectively.
E) None of the above.