8. Chad owned an office building that was destroyed in a tornado. The adjusted basis of the building at the time was $890,000. After the deductible, Chad received an insurance check for $850,000. He used the $850,000 to purchase a new building that same year. How much is Chad's recognized loss, and what is his basis in the new building? Recognized Loss a. $0 New Basis $850,000 b. $0 $890,000 c. $40,000 $850,000 d. $40,000 $890,000