Ike, a single taxpayer, is reassigned for his job and must move to a new state. While searching for a place to live, he encounters a person who is selling her home in order to move to Ike’s current city. The two agree to trade their properties to each other without any further consideration. Ike’s house has a fair market value of $200,000 and basis of $130,000. He has lived in the house for one year. The house he is acquiring in the trade has a fair market value of $300,000. What gain will Ike recognize for Federal tax purposes?

a. $50,000

b. $100,000

c. $0

d. $300,000