Dan owned a small rental property, which was condemned by the county to expand a local park. His adjusted basis in the property was

$40,000 and he received a payment of $75,000 from the county. A year later he purchased a similar piece of real estate for

$70,000. What is Dans recognized gain on the involuntary conversion of his rental property?

0

b. $35,000 c. $30,000 d. $10,000 e. $5,000