In April, Vandals Completely Destroyed Outdoor Signage Owned by Renfru

In April, vandals completely destroyed outdoor signage owned by Renfru Inc. Renfru's adjusted tax basis in the signage was $31,300. Renfru received a $50,000 reimbursement from its property insurance company, and on August 8, it paid $60,000 to replace the signage. Compute Renfru's recognized gain or loss on the involuntary conversion and its tax basis in the new signage.

A) No recognized gain or loss; $50,000 basis in the signage
B) No recognized gain or loss; $60,000 basis in the signage
C) $18,700 recognized gain; $60,000 basis in the signage
D) None of the above.