On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NPs adjusted basis in the warehouse was $590,000. On March 12, 2017, NP received a $770,000 reimbursement from its insurance company. In each of the following cases:

A. Determine NPs recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NPs board of directors decided not to replace the warehouse.

B. Determine NPs recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On January 2, 2019, NP paid $780,000 to acquire a warehouse to store its inventory.

C. Determine NPs recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On February 8, 2020, NP paid $780,000 to acquire a warehouse to store its inventory.

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