Olivia and Matthew exchange real estate in a like-kind exchange. Olivia's basis in the real estate, subject to a $100,000 mortgage, is $250,000 and the fair market value is $400,000. She receives real estate with a fair market value of $300,000 and Matthew assumes the mortgage. What is Olivia's recognized gain and adjusted basis for the real estate received??
a. ?None of the above.
b. ?$50,000, $400,000.
c. ?$100,000, $250,000.
d. ?$100,000, $400,000.
e. ?$0, $250,000.