Dwight Schrute had an office building destroyed in a fire. The old building was purchased for $366,000, and $81,400 of depreciation deductions had been taken. Although the old building had a fair market value of $425,000 at the time of the fire, his insurance proceeds were limited to $399,000. Dwight found qualified replacement property that he acquired six months later for $393,000.

1. What is the amount of Dwight's realized gain?
2. What is the amount of Dwights recognized gain?
3. What is Dwights basis in his new building?