Kat Inc.'s warehouse building was completely destroyed in a fire. Kat purchased the building several years ago for $200,000. Since it was purchased, Kat claimed $26,00 in total depreciation for it. Due to is favorable location, the building has increased in value and Kat had it insured for its current fair market value of $280,000. Kat received $268,000 from the insurance company.

a. lf within 1 year Kat Inc purchases a new building for $260,000, how much gain or loss does it recognize?

b. If Kat Inc instead purchases the new building for $270,000, how much gain or loss does it recognize?

c. If Kat Inc instead purchases a new building for $165,000, how much gain or loss does it recognize?