Joe's expensive vacation home is destroyed by an electrical fire. The insurance company pays $600,000 for the structure. Joe's tax basis in the property is only $200,000 because he bought it many years ago. A. If Joe chooses not to replace the property, he will recognize a $600,000 involuntary conversion gain, B. If Joe elects to defer the gain but only spends $500,000 on the new property, he will recognize a $100,000 involuntary conversion gain C. If Joe makes the gain deferral election and spends exactly $600,000 to replace the vacation home within the required time period, he can defer $200,000 of the involuntary conversion gain, D. If Joe elects to deger the gain and spends $700,000 to replace the property, his basis in the replacement property is $200,000.