DM Inc .Incurred a $ 25,000 net capital loss in 2010 that carried forward into 2011. During 2011 , a hurricane destroyed business assets with a $ 12,000 basis .DM received a # 150,000 insurance reimbursement which it immediately used to purchase replacement assets.The new assets have a three year MACRS recovery period. Should DM elect to defer the gain recognized on the involuntary conversion?