During the current year, Tim and Xavier exchange real estate investments. Tim gives up property with an adjusted basis of $250,000 (fair market value of $300,000), which is subject to a mortgage of $50,000 (assumed by Xavier). In return for this property, Tim receives property with a fair market value of $225,000 and $25,000 cash. What is Tims realized gain?

a. $0

b. $25,000

c. $50,000

d. $100,000