10) Mr. Sutter owned an office building with an adjusted basis of $127,500 and FMV of $105,000. The state condemned the property for a highway project. If Mr. Sutter receives $105,000 from the condemnation and immediately reinvests in qualifying property, what gain (loss) should he recognize? $105,000 gain. B $22,500 loss. C $127,500 gain. D $22,500 gain.