1. Unicorps building was destroyed by a tornado. The fair market value of the building at the time of the tornado was $800,000 and its adjusted basis was $700,000. The insurance proceeds totaled $1,000,000; $800,000 for the building and $200,000 for lost profits during rebuilding. Unicorp does not defer any gain under the involuntary conversion provisions of Code Sec. 1033. What amount of the insurance proceeds is taxable to Unicorp?

1. $0
2. $100,000
3. $200,000
4. $300,000