Nagin Inc Transferred an Old Asset in Exchange for a New

Multiple Choice

Nagin Inc. transferred an old asset in exchange for a new asset worth $84,000 and $6,000 cash. The old asset and new asset were like-kind properties. Which of the following statements is true?

A) If Nagin's basis in the old asset was $95,000, Nagin can recognize a $5,000 loss.
B) If Nagin's basis in the old asset was $85,000, Nagin must recognize a $6,000 gain.
C) If Nagin's basis in the old asset was $79,200, Nagin must recognize a $6,000 gain.
D) None of these choices are true.