Mrs. Rubble's rental property, which had an adjusted basis of $25k, was completely destroyed by fire. She received $38k of insurance proceeds. Within 1 yr, she reinvested $28k in property similar in use. If Mrs. Rubble elects to postpone the gain from this involuntary conversion, the amount of recognized gain and her basis in the new rental property are (tax accounting)

CHOICES (NUMBERS IN $)

A Gain of 10k; Basis 28k

B gain of 10k; basis of 38k

c gain of 10k; basis of 25k

d gain of 0; basis of 25k