The dump truck used in Sandhills Landscaping, LLC was stolen. When the truck was recovered, it was beyond repair. The insurance company paid Sandhills Landscaping $28100 for the truck. The dump truck had an adjusted basis of $31000 and a FMV of $24000 at the time of the theft. Within days of receiving the insurance proceeds, Sandhills Landscaping purchased a replacement dump truck for $24900. Calculate the gain or loss recognized on the involuntary conversion by Sandhills Landscaping, LLC.

$7000 loss $4100 gain $2900 loss $1200 gain