A warehouse with an adjusted basis of $250,000 was destroyed by a tornado on April 15, 2019. On June 15, 2019, the insurance company paid the owner $395,000. The owner reinvested $470,000 in a new warehouse. What is the basis of the new warehouse if non-recognition of gain from an involuntary conversion is elected?

a. $105,000.

b. $250,000.

c. $325,000.

d. $395,000.