In 2018 Devon exchanged a large rental unit in an apartment building having a fair market value of $350,000 for cash of $30,000 and a smaller rental unit with a fair market value of $320,000. Her adjusted basis in the large unit is $280,000. How much gain should she recognize for this exchange and what is her basis in the smaller unit?

	Recognized gain is $0 and her basis in the smaller rental unit is $320,000
	Recognized gain is $0 and her basis in the smaller rental unit is $250,000
	Recognized gain is $30,000 and her basis in the smaller rental unit is $350,000
	Recognized gain is $30,000 and her basis in the smaller rental unit is $280,000
	None of the above