Emily’s warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2022. Emily, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2023. Calculate Emily’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 2023.

b. Acquires a new warehouse for $500,000 in January 2023.

c. Does not acquire replacement property.