Tonys factory building was destroyed in a fire (adjusted basis of $90,000; fair market value of $140,000). Of the insurance proceeds of $128,000 he receives, Tony uses $88,000 to purchase additional inventory and invests the remaining $40,000 in short-term certificates of deposit. What is Tonys recognized gain or loss? a. $0. b. $12,000 loss. c. $38,000 gain. d. $40,000 gain. e. None of the above