Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Jasmine Den FMV $ 500,000 $ 530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Jasmine assumed the mortgage on the Den property, and Den assumed the mortgage on the Jasmine property. Compute Den's gain recognized on the exchange and its tax basis in the property received from Jasmine. $100,000 gain recognized; $383,000 basis in the Jasmine property. $100,000 gain recognized; $313,000 basis in the Jasmine property. $30,000 gain recognized; $283,000 basis in the Jasmine property. $30,000 gain recognized; $313,000 basis in the Jasmine property. Johns Company uses the accrual method of accounting. Here is a reconciliation of Johns' allowance for bad debts for the current year. Beginning allowance for bad debts $950,000 Actual write-offs of accounts receivable during the year (899,600) Addition to allowance 845,000 Ending allowance for bad debts $ 895,400 Because of the difference between the GAAP rules and the tax rules for accounting for bad debts, Johns Company has a: $54,600 permanent excess of taxable income over book income. $54,600 permanent excess of book income over taxable income. $54,600 temporary excess of taxable income over book income. $54,600 temporary excess of book income over taxable income