Pavlina's business property (located in Alexanderland USA) was condemned by the proper local authorities. Immediately before the condemnation, the property had a fair market value of $1,000,000 and Pavlina's adjusted basis in the property was $200,000. The local authorities replaced Pavlina's condemned property with similar Alexanderland property having a fair market value of $500,000. What is Pavlina's realized gain or loss relating to these matters?
a. $0
b. Loss of $500,000
c. Gain of $300,000
d. Gain of $500,000