Kahil Exchanges a Drill Press That Is Used in His

Multiple Choice

Kahil exchanges a drill press that is used in his business for another drill press.The old drill press had an adjusted basis of $5,000 and the new drill press has a fair market value of $30,000.What is Kahil's recognized gain or loss and the basis of the new drill press?

A) $0 and $5,000.
B) $0 and $30,000.
C) $25,000 and $5,000.
D) $25,000 and $30,000.
E) None of the above.