3. Chen owns a commercial building held for investment purposes. The commercial building is worth $650,000, although it is subject to a mortgage of $100,000. Chen's basis in the commercial building is $375,000. Chen exchanges the commercial building for an apartment building. The apartment building has an FMV of $400,000. Chen receives $50,000 cash in addition to receiving the apartment building, and the other party assumes the commercial building mortgage. What is Chen's recognized gain on this exchange? A) $0 B) $100,000 C) $150,000 D) $175,000