Nick had a business building destroyed in a fire. The old building was purchased for $375,000 and $60,000 of depreciation deductions had been taken. Although the old building had a fair market value of $425,000 at the time of the fire, his insurance proceeds were limited to $400,000. Nick found qualified replacement property which he acquired two months later for $380,000.

Realized Gain/Loss?

Recognized Gain/Loss?

Basis in New Asset?