Pattis garage (used to store business property) is destroyed by a fire. She decides not to replace

Question:

Patti’s garage (used to store business property) is destroyed by a fire. She decides not to replace it and uses the insurance proceeds to invest in her business. The garage had an adjusted basis of $50,000.
a. If the insurance precedes total $20,000, what is Patti’s recognized gain or loss?
b. If the insurance precedes total $60,000, what is Patti’s recognized gain or loss?