Nancy and Tonya Exchanged Assets

Multiple Choice

Nancy and Tonya exchanged assets. Nancy gave Tonya her personal residence with an adjusted basis of $280,000 and a fair market value of $560,000. The house has a mortgage of $200,000 which is assumed by Tonya. Tonya gave Nancy a yacht used in her business with an adjusted basis of $250,000 and a fair market value of $360,000. What is Tonya's realized and recognized gain?

A) $310,000 realized and $310,000 recognized gain.
B) $310,000 realized and $0 recognized gain.
C) $110,000 realized and $110,000 recognized gain.
D) $110,000 realized and $0 recognized gain.
E) None of the above.