8. Chad owned an office building that was destroyed in a tornado. The adjusted basi of the building at the time was $890,000. After the deductible, Chad recei insurance check for $850,000. He used the $850,000 to purchase a new buil same year. How much is Chad's recognized loss, and what is his basis in the new building? an New Basis $850,000 $890,000 $850,000 $890,000 Recognized Loss a. $O b. $0 C. $40,000 d. $40,000