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Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market value of the bowling alley was $230,000 before

Tobias owns a bowling alley which was completely destroyed this year by a tornado. The fair market value of the bowling alley was $230,000 before the tornado and its adjusted basis was $100,000. Tobias received $220,000 from his insurance company but he decided to not rebuild the alley. What is Tobias recognized gain or loss from this transaction?

Group of answer choices

$ 0

Loss of $230,000

Gain of $120,000

Gain of $220,000

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