Miriam's business machine is destroyed in a fire. The adjusted basis in the machine before the fire was $120,000 and its fair market value before the fire was $250,000. The insurance company reimbursed Miriam $260,000 for her loss, and she immediately purchased a new machine for $280,000. What is Miriam's recognized gain and adjusted basis in the new machine?

Select one:

a. $140,000 and $280,000, respectively

b. $0 and $120,000, respectively

c. $0 and $140,000, respectively

d. $10,000 and $280,000, respectively