16- Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market value of the bowling alley was $230,000 before the tornado and its adjusted basis was $100,000. Tobias received $220,000 from his insurance company but he decided to not rebuild the alley. What is Tobias' recognized gain or loss from this transaction?

$ 0

Loss of $230,000

Gain of $120,000

Gain of $220,000