Assignment task: On September 1 of the tax year, Alex's fishing boat sank off the coast of North Carolina due to a severe storm. The fair market value of the fishing boat before the casualty was $60,000. He bought the boat five years earlier for $35,000. His insurance company reimbursed him $50,000. On November 24 of the tax year, he purchased a smaller boat for $40,000. What is his recognized taxable gain for the year of the casualty?
A) $0
B) $10,000
C) $25,000
D) $50,000