1) Cal exchanges an apartment building (including land) with an adjusted basis of $55,000 (and fair market value of $90,000) for a piece of undeveloped land valued at $80,000 and $10,000 cash.As a result of the exchange, Carl paid $14,000 of fees.What is Carl's recognized gain on the exchange?

A.$35,000

B. $10,000

C. $21,000

D. $0

2) Conrad corporation's warehouse was destroyed by a hurricane in September 2018.The estimated fair market value before the hurricane was $750,000 and Conrad's adjusted basis in the warehouse was $450,000.Insurance paid $725,000 as a result of this event.Conrad purchased a new Warehouse in December of 2018 for $700,000.What is Conrad's deductible loss or recognized gain?

A. zero deductible loss or recognized gain

B. $450,000 deductible loss

C. $25,000 recognized gain

D. 750,000 deductible loss