Kittys factory building, which has an adjusted basis of $475,000, is destroyed by fire on April 8, 2022. Insurance proceeds of $500,000 are received on June 1, 2022. She has a new factory building constructed for $490,000, which she occupies on October 1, 2022.

Assuming Kittys objective is to minimize her current-year tax liability, calculate her recognized gain or loss and the basis of the new factory building.