Norse manufacturing Inc. owned a warehouse in California which was completely destroyed by a wildfire. Norse provides you with the following information. The warehouse: Fair market value of $1,500,000 Cost of warehouse $1,000,000 Total MACRS depreciation $118,610 Insurance proceeds received $1,350,000 One year after the loss a new warehouse was built and placed in service at a cost toe Norse of $1,250,000. What is Norse's recognized gain?