Risa Exchanges an Office Building with a $600,000 Adjusted Basis

Multiple Choice

Risa exchanges an office building with a $600,000 adjusted basis for an apartment building with a $1,000,000 FMV and $200,000 of marketable securities.The other party indicates he had paid $175,000 for the securities a year earlier.What is Risa's basis for the securities?

A) $0
B) $175,000
C) $200,000
D) none of the above.