Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His insurance company pays him $140,000 and he immediately invests in a new building at a cost of $142,000. What is the amount of recognized gain or loss on the destruction of Oscar’s building?

a. $0

b. $10,000 gain

c. $8,000 gain

d. $12,000 gain

e. $2,000 loss