Jason hired Neil to replace a motor in his car, and the original estimate of the repair was $3,500. After beginning the repair, it was determined that the repair would cost an additional $400. Jason offered Neil a car in exchange for the total cost of the repairs. Jason bought the car several years ago for $8,000. What is the amount that Neil will include in income, and what is his basis in the car he received for payment of his services? 

Income: $8,000 ; Basis: $3,500 

Income: $3,900 ; Basis: $3,900 

Income: $3,500 ; Basis: $8,000 

Income: $3,900 ; Basis: $8,000