On July 15, Year 1, Blanca's office building burned to the ground due to an electrical fire.The building's adjusted basis at the time of the fire was $100,000 but it was insured for $550,000, which Blanca received on August 1, Year 1.On December 1, Year 3, Blanca purchased a new office building at a cost of $500,000.Under the involuntary conversion rules of Code Section 1033, what is Blanca's tax basis in the new building?

$100,000

$150,000

$450,000

$500,000