Edith’s warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2018. Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2019- Calculate Edith s realized gain or loss, recognized gain or loss, and basis for the replacement property if she:
a. Acquires a new warehouse for $550,000 in January 2019.
b. Acquires a new warehouse for $500,000 in January 2019-
c. Does not acquire replacement property.