A client owns an apartment building with a fair market value of $250,000, an adjusted basis of $175,000 and a mortgage of $150,000. The client exchanges the building and $40,000 cash for a different apartment that has a fair market value of $220,000. The client assumes the $80,000 mortgage on the building to be acquired. Which tax amount will the client realize as a result of the exchange?

$30,000 gain

$45,000 gain

$75,000 gain

$0 gain or loss