A fire recently destroyed a warehouse owned by Company J. Its adjusted basis in the warehouse was

Question:

A fire recently destroyed a warehouse owned by Company J. Its adjusted basis in the warehouse was $489,000. However, the warehouse’s replacement value (cost to rebuild) was $610,000. Determine the tax consequences of this property disposition assuming that:
a. The building was insured, and Company J received a $450,000 reimbursement from the insurance company.
b. The building was uninsured.