Oscar owns a commercial fishing boat which he uses to catch fish for sale in his fishing business. The boat is destroyed by fire in 2022. The fair market value of the boat at the time of the fire was $500,000 and its adjusted basis $300,000. He receives insurance proceeds of $450,000. For tax purposes only, he would be best off to;

1. Buy a replacement boat for his fishing business within 2 years for at least $450,000 and use it to catch fish for his fishing business
2. Buy a new building for his fishing business within 2 years for at least $450,000 that he desperately needs to process the fish. 'C. Buy a replacement boat for his fishing business within 2 years for $250,000, use the new boat to catch fish for his business while putting the remaining insurance proceeds in a saving account

D. It makes no difference whether he replaces the boat or not because the fire was not a federally declared disaster