Question 10 of 15. Sam lost his hunting cabin in a flood on May 15 of the current tax year. His adjusted basis in the property was $23,000, and the fair market value of the property was $30,000 when it was destroyed. His insurance company reimbursed him $25,000. On December 2 of the current tax year, he purchased another hunting cabin for $35,000. What is his recognized (taxable) gain? $0 $2,000 $5,000 $10,000