Beta Corp. had an involuntary conversion on December 31, 2023.  It's equipment had been acquired on May 1, 2021 for $98,000 and its adjusted basis was $28,400.  The equipment was completely destroyed by fire and Beta received $20,000 of insurance proceeds for the machine and did not replace it.  This was Beta's only casualty and theft event for the year.  As a result of this event, Beta initially has:

 

	a.	$20,000 Sec. 1245 recapture gain.
	b.	None of the choices presented are correct.
	c.	$8,400 Sec. 1231 loss.
	d.	$8,400 casualty loss.
	e.	$20,000 Sec. 1231 loss.