Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October

2019. Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2020.

Calculate Edith's realized gain or loss, recognized gain or loss, and basis for the replacement

property if she:

a) Acquires a new warehouse for $550,000 in January 2020.

b) Acquires a new warehouse for $500,000 in January 2020.

c) Does not acquire replacement property.