Brian Bush and Charles Chex exchange business machines. Brian gives Charles a machine with a basis of $3,500 (fair market value $3,000) plus $2,000 in cash. Charles gives Brian a machine with a basis of $5,000 and a fair market value of $5,000. What is Charles's recognized gain and his basis in the new machine? a. $2,000 and $5,000 b. $500 and $3,500 c. $1,000 and $5,000 d. $0 and $3,000