Five Years Ago,Q&J Inc

Multiple Choice

Five years ago,Q&J Inc.transferred land with a $345,000 book and tax basis for a different parcel of land worth $472,000.Q&J included its $127,000 realized gain in book income,but the exchange was nontaxable.This year,Q&J sold the parcel of land received in the exchange for $533,000 cash.Compute Q&J's book and tax gain on sale.

A) $188,000 book and tax gain
B) $188,000 book gain and $61,000 tax gain
C) $61,000 book and tax gain
D) None of the above