On August 20, 2018, the building used as its headquarters by the Pangborn Company, a calendar-year taxpayer, was destroyed by a cyclone. The building had a fair market value before the cyclone of $1,200,000 and a basis of $675,000. The Pangborn Company received $1,200,000 from its insurance company on December 10, 2018 to make repairs or replace the building. On January 2, 2021, The Pangborn Company finally invests $1,100,000 in a qualifying replacement building. What is Pangborn’s realized and recognized gain or loss on this involuntary conversion.