Alex had a rental property that was condemned by the county in order to build a new road. He paid $70,000

for the property, and the county awarded him $85,000 for the property and $20,000 as a severance damage.

Alex purchased a new rental home for $110,000. What is the amount of Alex's nonrecognition of gain?

$35,000

$20,000

$15,000

$40,000

$10,000