Ashley Owns 200 Acres of Farm Land Is Southeastern Virginia

Multiple Choice

Ashley owns 200 acres of farm land is southeastern Virginia.Her adjusted basis for the land is $525,000 and there is a $390,000 mortgage on the land.She exchanges the land for an office building owned by Chris in Newark,New Jersey.The building has a fair market value of $450,000.Chris assumes Ashley's mortgage on the land.What is the amount of Ashley's recognized gain or loss on the exchange?

A) $0.
B) $315,000.
C) $390,000.
D) $840,000.
E) None of the above.