James corporation exchanges a building (fair market value = $800,000, adjusted basis = $600,000) that has a $100,000 mortgage for another building owned by Pete Corporation (fair market value = $1,100,000, adjusted basis = $600,000) that is encumbered by a $400,000 mortgage. Each party assumed the mortgage on the building received. What are James's and Pete's recognized gains on the exchange, respectively?

	a.	0, 0
	b.	0, $300,000
	c.	$100,000, 0
	d.	$100,000, $400,000