Cal Exchanges an Apartment Building (Including Land) with an Adjusted

Multiple Choice

Cal exchanges an apartment building (including land) with an adjusted basis of $55,000 (and fair market value of $90,000) for a piece of undeveloped land valued at $80,000 and $10,000 cash. As a result of the exchange, Carl paid $14,000 of fees. What is Carl's recognized gain on the exchange?

A) 0
B) $10,000
C) $35,000
D) $21,000