Babex Incorporated and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Babex OMG FMV $ 1,000,000 $ 825,000 Adjusted tax basis 768,000 514,500 Mortgage 175,000 -0- Pursuant to the exchange, OMG assumed the mortgage on the Babex property. Compute OMG's gain recognized on the exchange and its tax basis in the property received from Babex. Multiple Choice $175,000 gain recognized; $514,500 basis in Babex property. No gain recognized; $689,500 basis in Babex property. Multiple Choice $175,000 gain recognized; $514,500 basis in Babex property. No gain recognized; $689,500 basis in Babex property. No gain recognized; $514,500 basis in Babex property. None of these choices are correct