In 2014, an office building owned by Firm F was completely destroyed by fire. F’s adjusted basis in the building was $485,000, and its insurance reimbursement was $550,000. On its 2014 tax return, F elected to defer the $65,000 gain realized on the involuntary conversion. In 2016, F invested $560,000 in another office building. In 2017, F settled a dispute with its insurance company concerning the 2014 claim. Pursuant to the settlement, it received a $25,000 additional reimbursement.