Jason sold land with a basis of ($35,000) in a tax- deferred transaction in the current year

Question:

Jason sold land with a basis of $$35,000$ in a tax- deferred transaction in the current year and realized a gain of $$50,000.$ The land received had a fair market value of $$65,000$ and a basis of $$40,000.$ The gain deferred was $$10,000.$ What is Jason’s basis in the land received?

a. $35,000

b. $40,000

c. $50,000

d. $55,000

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