Daisy's Warehouse Is Destroyed by a Tornado

Multiple Choice

Daisy's warehouse is destroyed by a tornado.The warehouse has an adjusted basis of $130,000 when destroyed.Daisy receives an insurance reimbursement check for $150,000 and immediately reinvests $120,000 of the proceeds in a new warehouse.What are Daisy's recognized gain or (loss) and her basis in the replacement warehouse?
​
Recognized New
Gain (Loss) Basis

A) $ - 0 - $120,000
B) $20,000 $120,000
C) $30,000 $110,000
D) $10,000 $130,000
E) $20,000 $100,000