Which of the following statements is incorrect?

a. If a taxpayer reinvests the net proceeds (amount received related expenses) received in an involuntary conversion in qualifying replacement property within the statutory time period, it is possible to defer the recognition of the realized gain.

b. The holding period of replacement property where the election to postpone gain is made includes the holding period of the involuntarily converted property

c. Section 1033 (nonrecognition of gain from an involuntary conversion) applies to both gains and losses.

d. If the amount reinvested in replacement property is less than the amount realized, realized gain is recognized to the extent of the deficiency.