Ernie owns a warehouse that is destroyed by fire on March 21, 2014. The warehouse, which had an adjusted basis of $50,000 at the time of the fire, was insured at its fair market value of $120,000. Ernie collects the $120,000 insurance on May 11, 2014.  a. What is the latest date that qualifying replacement property can be acquired? b. Assume Ernie invests $80,000 of the insurance proceeds in replacement property on November 1, 2014. What is his gain or loss if Section 1033 is properly elected? c. What is the basis of the replacement property in b. above?

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