Jaimes home was completely destroyed by flooding in 2016. He purchased the home in 2010 for $175,000 including $50,000 allocated for the land.

a. What is Jaimes loss (assuming he had no insurance)?

b. If Jaimes adjusted gross income is $80,000, what is his deductible loss?

c. Assume Jaime had insurance and received $160,000 in insurance proceeds to rebuild his home. What is his realized gain or loss?

d. What is the recognized gain or loss if he elects to build a smaller home and only uses $120,000 of the insurance proceeds to build the replacement home?