Farmer's barn was destroyed by a tornado. The barn had a fair market value of $40,000 but was insured for $35,000. The adjusted basis in the Barn was $20,00 Farmer plans to rebuild his barn and plans to spend $30,000 on the replacemern property. What are the tax consequences of his plan? Show your computations 2 points Farmer's barn was destroyed by a tornado. The barn had a fair market value of $40,000 but was insured for $35,000. The adjusted basis in the Barn was $20,00 Farmer plans to rebuild his barn and plans to spend $30,000 on the replacemern property. What are the tax consequences of his plan? Show your computations 2 points