C) Mason, LLC exchanged an office building used in its business for a rental house. Mason, LLC originally purchased the building for $80,000, and it had an adjusted basis of $53,000 at the time of the exchange. The rental house had a fair market value of $62,000. Mason also received $7,000 of cash in the transaction. What is Mason's gain or loss recognized on the exchange? What is Mason's basis in the rental house?