In the current year, fire completely destroyed a building used by Kylo in Kylos business. The building had cost Kylo $110,000 and had an adjusted basis of $75,000. She received insurance proceeds of $120,000 and immediately spent $105,000 of the proceeds on real estate that was similar or related in use or service. How much gain does Kylo recognize on this involuntary conversion? Based on your answer to the preceding question, what is Kylos basis in the new real estate?