In April,vandals Completely Destroyed Outdoor Signage Owned by Renfru Inc

Multiple Choice

In April,vandals completely destroyed outdoor signage owned by Renfru Inc.Renfru's adjusted tax basis in the signage was $31,300.Renfru received a $50,000 reimbursement from its property insurance company,and on August 8,it paid $60,000 to replace the signage.Compute Renfru's recognized gain on loss on the involuntary conversion and its tax basis in the new signage.

A) No recognized gain or loss; $50,000 basis in the signage
B) No recognized gain or loss; $60,000 basis in the signage
C) $18,700 recognized gain; $60,000 basis in the signage
D) None of the above