In 2018, transportation equipment owned by Corporation ABC was stolen. The adjusted basis in the equipment was $105,000, and ABC received a $400,000 insurance reimbursement. It immediately paid $440,000 for replacement transportation equipment. On its 2018 tax return, ABC elected to defer the $295,000 gain realized on the involuntary conversion. In 2019, ABC generated a $7 million net operating loss—the first in its history. ABC’s aggregate taxable income on its 2017 and 2018 returns was $3.2 million. Identify the tax issue or issues suggested by the situations, and state the issue in the form of a question.