Gisela exchanged land with a tax basis of $36,000 that she had held for four years as an investment, for similar land valued at $40,000, which was owned by Manuel. Manuel also assumed a $12,000 mortgage Gisela had on the land. As a result of this transaction, Gisela should report a long-term capital gain of:

Select one:

a. $0

b. $4,000

c. $12,000

d. $16,000

e. None of the above.