On October 5, 2014, Safecom’s office building is destroyed by a tornado. Safecom's adjusted basis in the building is $325,000. On December 16, 2014, Safecom receives a check for

$750,000 from the insurance company. If Safecom wants to postpone the entire realized gain, (1) what amount must it spend on qualified replacement property, and (2) what is the last day on which the replacement can be completed?

a. (1) $425,000 and (2) December 31, 2016, respectively

b. (1) $425,000 and (2) December 31, 2017, respectively

c. (1) $750,000 and (2) December 31, 2016, respectively

d. (1) $750,000 and (2) December 31, 2017, respectively