Ataxpayer's building that is subject to CCA is destroyed by a tornado. Because the insurance proceeds received from the loss are greater than the original cost of thebuilding, ________.

Choose the correct answer.

A.

there is no taxable capital gain since insurance proceeds arenon-taxable

B.

the taxpayer must include the taxable portion of the capital gain in net income for the year

C.

the taxpayer can claim a capital loss equal to the amount of UCC on the building

D.

the taxpayer can defer the gain by purchasing replacement property during the appropriate time period and making an election in thetaxpayer's return of income