Ted paid $1,000,000 for an office building and had taken $300,000 in depreciation. The building had a fair market value of $1,100,000 when it was seized by the city under the right of eminent domain. Ted received $1,100,000 from the city in December of 2020 and promptly reinvested in another office building with a cost of $1,000,000 in January of 2021. Required: a. What is Teds recognized gain from the above transactions? b. What is Teds basis for the new office building?