Sec. $1231$ Transactions. During the current year, Sean$$s office building is destroyed by$$ fire. After collecting the insurance proceeds, Sean has a $$50,000$ recognized gain. The$$ building was acquired in $1998,$ and the straight$-$line method of depreciation has been$$ used. He does not plan to acquire a replacement building. In addition to the gain on the$$ building, consider the following independent cases and determine his total net capital$$ gain. For each case, include the $$50,000$ casualty gain described above. a$.$ Land used in his trade or business and held more than a year is condemned by the state.$$ The recognized gain is $$60,000.$ b$.$ Assume the same facts as in Part a$,$ except the condemnation results in a $$60,000$ loss. c$.$ An apartment building used as residential rental property and held more than one year$$ is destroyed by a sudden, unexpected mudslide. The building is not insured, and the$$ loss amounts to $$200,000$