Carolyn's factory with a basis of $240,000 is condemned by the state. The state awards her $300,000 and she then purchases an office building for $260,000. What is Carolyn's recognized gain in the year of receipt of the award if she makes a timely election under Code Section 1033?

a. $40,000.

b. $60,000.

c. $20,000.

d. $0.

e. None of the above.