On December 31, 20X4, a building owned by Pine Corp. was totally destroyed by fire. The

building had fire insurance coverage up to $500,000. Other pertinent information as of

December 31, 20X4, follows:

Building, carrying amount

$520,000

Building, fair market value

550,000

Removal and cleanup cost

10,000

During January 20X5, before the 20X4 financial statements were issued, Pine received

insurance proceeds of $500,000. On what amount should Pine base the

determination of

its loss on involuntary conversion?

A. $520,000

B. $530,000

C. $550,000

D. $560,000