Chad owned an office building that was destroyed in a tornado. The adjusted basis of the building at the time was $890,000. After the deductible, Chad received an insurance check for $950,000. He used $900,000 of the insurance proceeds to purchase a new building that same year. How much is Chad's recognized gain, and what is his basis in the new building?

Recognized Gain             New Basis
a. $0................................... $890,000
b. $0................................... $900,000
c. $50,000.......................... $890,000
d. $60,000.......................... $900,000