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Elizabeth's factory is completely destroyed in a fire. Her basis in the factory was $3 Million. Insurance paid her $5 Million. By the end of

Elizabeth's factory is completely destroyed in a fire. Her basis in the factory was $3 Million. Insurance paid her $5 Million. By the end of the year, she had purchased a replacement factory for $4 Million.

What is the least amount of gain that Elizabeth can recognize as part of this transaction?

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