On January $10,2020,$ a fire destroyed a warehouse owned by NP Company. NP$\text{'}$s adjusted basis in the warehouse was $$540,000.$ On

March $12,2020,$ NP received a $$670,000$ reimbursement from its insurance company. In each of the following cases:

Required:

a$.$ Determine NP$\text{'}$s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible.

NP$\text{'}$s board of directors decided not to replace the warehouse.

b$.$ Determine NP$\text{'}$s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible.

On January $2,2022,$ NP paid $$710,000$ to acquire a warehouse to store its inventory.

c$.$ Determine NP$\text{'}$s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible.

On February $8,2023,$ NP paid $$710,000$ to acquire a warehouse to store its inventory.

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Determine NP$\text{'}$s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when

possible. NP$\text{'}$s board of directors decided not to replace the warehouse.

Recognized gain