On 1/2/16, Joe purchased a factory building in Allentown for $400,000. In order to make room for its new hockey arena, t

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On 1/2/16, Joe purchased a factory building in Allentown for
$400,000. In order to make room for its new hockey arena, the City
of Allentown took ownership of Joe’s building through eminent
domain. On 6/5/21, the City paid Joe $450,000 for the building. On
12/1/21 Joe purchased a new office building for $420,000. How much
gain does Joe need to recognize because of this transaction? What
is Joe’s basis in the new building?