@taxes96786  Yes, it is likely that the insurance coverage was on a replacement cost basis. In order to get the full value of the claim from the insurance company, the insured must replace the property and provide proof. 

@catherine3  you’re correct that  the disposition of old assets will be 0. New depreciation for the replacement equipment. I assume sec 179 may be used to extent allowable. @Accountant-Man knows business returns better than me.