Beta Corp. had an involuntary conversion on December $31,2023.$ It's equipment had been acquired on May $1,2021$ for $$98,000$ and its adjusted basis was $$28,400.$ The equipment was completely

destroyed by fire and Beta received $$20,000$ of insurance proceeds for the machine and did not replace it$.$ This was Beta's only casualty and theft event for the year. As a result of this event, Beta

initially has:

a$.$ $$8,400$ casualty loss.

b$.$ $$20,000$Sec$\mathrm{.}1245$ recapture gain.

c$.$ None of the choices presented are correct.

d$.$ $$20,000$ Sec. $1231$ loss.

e$.$ $$8,400$ Sec. $1231$ loss.