Daisy's Warehouse Is Destroyed by a Tornado

Short Answer

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?
$$\begin{array} { l l l } & { \text { Recognized } } & \text { New } \\& \underline { \text { Gain (Loss) } }& \underline { \text { Basis }} \\\text { a. } & \$-0- & \$ 120,000 \\\text { b. } & \$ 20,000 & \$ 120,000 \\\text { c. } &\$ 30,000 & \$ 110,000 \\\text { d. } & \$ 10,000 & \$ 130,000 \\\text { e. } & \$ 20,000 & \$ 100,000\end{array}$$