Red Company had an involuntary conversion on December 23, 2021. The machinery had been acquired on April 1, 2019, for $49,000 and its adjusted basis was $14,200. The machinery was completely destroyed by fire and Red received $10,000 of insurance proceeds for the machine and did not replace it. This was Red's only casualty or theft event for the year. As a result of this event, Red initially has: Oa. 510.000 5 1231 loss Ob. 54.200 5 1231 loss. Oc. 54.200 casualty loss. Od. 10.000 5 1245 recapture gain