Heritage Inc. traded Land A for Land B$.$ Heritage's adjusted basis in Land $A$ is $$35,000,$ and the fair market value of Land $B$ is $$40,000.$ Heritage receive $$5,000$ cash and Land B for Land A$.$ What is Heritage's recognized gain or loss and the new basis for Land B$?$

A recognized gain of $$5,000$; Heritage's basis in Land $B$ is $35,000.$

A recognized gain of $$5,000$; Heritage's basis in Land $B$ is $40,000.$

A recognized gain of $$10,000$; Heritage's basis in Land $B$ is $40,000.$

No recognized gain or loss; Heritage's basis in Land B is $40,000.$