QUESTION 11 An office building with an adjusted basis of $320,000 was destroyed by fire on December 30, 2020. On January 11, 2021, the insurance company paid the owner $450,000. The owner reinvested $400,000 in a new office building on February 12, 2021, that was smaller than the original office building. What is the recognized gain and the basis of the new building if 1033 (nonrecognition of gain from an involuntary conversion) is elected? a. S0 and 320,000 b. 50 and $410,000 c. $40,000 and 5320,000 d. 550,000 and $320,000 e. None of the above