Mrs., single, owns her principal residence in New Hampshire (Adjusted basis is $500,000). She has been living in this house for the past 5 years. On May 1, 2020 a flood completely destroyed her principal residence and she received $900,000 from her insurance company to rebuild or replace the home. Mrs. decides to build a replacement home.

1. What is the realized gain?
2. What is the excess gain?
3. How much needs to be reinvested in order to exclude the excess gain?
4. How much gain must she recognize if she invests only $600,000 in the new principal residence?
5. How much gain must she recognize if she invests only $350,000 in the new principal residence?