. Hal owns land (FMV $840,000; AB $700,000) subject to an $100,000 liability. Hal plans to exchange the land for land owned by Andy (FMV $890,000; AB $800,000) which is subject to a $150,000 liability. Each will assume the others debt. What is Andys recognized gain on the exchange?

a. $ 0

b. $ 50,000

c. $150,000

d. $ 90,000

e. None of the answers provided is correct.

** The answer is B just need to know how it was calculated ?**