Steve has a manufacturing business In the current year, his storage building is destroyed by fire It had an adjusted basis of $75,000 He received $300,000 from the insurance company and elected to replace the building under the involuntary conversion provisions He built a new storage building for $350,000  What is the basis of the new storage building

a. $150,000

b. $125,000

c. $100,000

d. $75,000