A fire totally destroys a manufacturing plant owned by Ansel Corporation. The plant, located in Louisiana, has been used for more than 30 years and is fully depreciated. Ansel’s insurance pays $500,000 for the destruction. In analyzing qualified replacement properties, Ansel can buy a qualified replacement manufacturing plant in Oklahoma for $460,000. What is the minimum amount of gain Ansel must recognize on the insurance proceeds? What is the basis of the Oklahoma plant? Explain.