kingbird corporation's plant was destroyed by a tornato. The plant has a cost of $507000 and accumulated depreciation of $176000 at the time of the loss. The plan will not be rebuilt. They received $451000 from their insurance company. What amount of the gain or loss will be recorded?

120000 loss on disposal of asset,

$451000 gain form insurance proceeds,

$331000 loss on disposal of asset,

$120000 gain on disposal of asset