Gabe's Office Building (Adjusted Basis of $200,000;fair Market Value of $250,000)is

True/False

Gabe's office building (adjusted basis of $200,000;fair market value of $250,000)is destroyed by a hurricane.Due to a 30% co-insurance clause,Gabe receives insurance proceeds of only $175,000.If Gabe purchases an office building for $250,000 one month later,its adjusted basis is $275,000 ($250,000 cost + $25,000 postponed loss).