Babex Inc. and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged. FMV Adjusted tax basis Mortgage Babex $1,000,000 768,000 175,000 OMG $825,000 514,500 -0- Pursuant to the exchange, OMG assumed the mortgage on the Babex property. Compute Babex's gain recognized on the exchange and its tax basis in the property received from OMG. C. Select one: O a. No gain recognized; $768,000 basis in OMG property. O b. $175,000 gain recognized; $768,000 basis in the OMG property. O None of these choices are correct. O d. $175,000 gain recognized; $943,000 basis in OMG property.