Debtor owes $ 100,000 to Creditor and in exchange for the debt transfers a piece of land to Creditor. The land has a book value of $ 50,000 and a market value of $ 90,000. As a result of this transaction:

to. DEBTOR has two gains; one for $ 40,000 and another for $ 10,000. CREDITOR has a loss of $ 50,000. b. DEBTOR has two gains; one for $ 40,000 and another for $ 10,000. CREDITOR has a loss of $ 10,000. c. CREDITOR has a loss of $ 10,000. DEBTOR cannot recognize profit or loss. d. CREDITOR has a loss of $ 50,000. DEBTOR cannot recognize profit or loss.