A tornado demolished several delivery vans owned for three years by Wadham Company. Wadham's adjusted basis in the vans was $28,400, and Wadham paid $90,000 to purchase new vans. Wadham received a $25,000 settlement from its casualty insurance company. Consequently. Wadham recognizes: Multiple Choice $3.400 Section 1231 lass $65,000 Section 1231 loss $65,000 ordinary loss None of these choices are correct