In order to build a new road, the city of Oxford annexed 20 acres of Michaels farmland with an FMV of $30,000 and basis of $18,000. In return, Michael received 50 acres of similar land, which was appraised at $45,000. In this involuntary conversion, what gain or loss should Michael recognize, and what is his basis in the new land?

a. $0 gain and $27,000 basis.

b. $0 gain and $18,000 basis.

c. $27,000 gain and $45,000 basis.

d. $12,000 gain and $30,000 basis.