Molly Exchanges Land (Adjusted Basis of $85,000; Fair Market Value

Multiple Choice

Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange.What is Molly's recognized gain or loss?

A) $0
B) $5,000
C) ($2,000)
D) ($7,000)