Babex Incorporated and OMG Company entered into an exchange of real property. Here is the information for the properties to be exchanged. BabexOMG FMV$ 1,000,000 $ 825,000 Adjusted tax basis768,000 514,500 Mortgage175,000 -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. Multiple Choice A.$175,000 gain recognized; $768,000 basis in OMG property. B.No gain recognized; $768,000 basis in OMG property. C.$175,000 gain recognized; $943,000 basis in OMG property. D.None of these choices are correct.