Ben owned machinery which had been acquired at a cost of $230,000. During 2019, the machinery was destroyed by fire. At that time, it had an adjusted basis of $190,000. The insurance proceeds awarded to Ben amounted to $250,000 and he immediately acquired qualifying replacement property for $225,000. What amount of gain should Ben report resulting from the involuntary conversion for 2019?

1. $35,000

2. $60,000

3. $ 0

4. None of the answers provided is correct.

5. $25,000