T was in the laundry and dry cleaning business. In the current year a fire completely destroyed the automatic dry cleaning equipment in T's plant. Several years earlier the equipment in T's plant had cost T dollar 40,000 and, since its acquisition, T had properly claimed straight-line depreciation on the equipment in the amount of dollar 16,000. After the fire and within the current year, T received dollar 28,000 as insurance covering the loss. If the dry cleaning end of the business has been unprofitable and T invests the dollar 28,000 in securities, rather than replacing the equipment, what will be the tax consequences? If the capacity of the old equipment was in excess of T's needs and T replaces the old with smaller new equipment at a cost of dollar 26,000 What will be the immediate tax consequences to T? What will be T's basis for the purpose of claiming depreciation on the new equipment? What would be the tax consequences to T if T made a quick change of plans and sold the newly acquired equipment for dollar 26,000 before any depreciation became allowable with respect to it