A tornado destroys your office building on 6/1/2019. Here are the facts

$100,000 Historical cost of office building

$40,000 depreciation taken on office building

$250,000 fair market value before tornado

$0 fair market value after the tornado

The building was insured for 80% of the fair Market value of the building

Insurance proceeds were received on 7/15/2020

What is the realized gain and when do the proceeds have to be reinvested to avoid gain recognition under IRC 1033?

A. $100,000 realized gain Insurance proceeds must be reinvested in like kind property by 12/31/2021 B. $190,000 realized gain Insurance proceeds must be reinvested in like kind property by 12/31/2021 C. $100,000 realized gain Insurance proceeds must be reinvested in like kind property by 12/31/2022 D. None of the above