Jeff gave his "wandering" nephew, Steve, ten acres of undeveloped land. Jeff's basis in the land was $35,000 and its fair market value at date of gift was $175,000. Two years after receiving the land, Steve sold it for $200,000. Compute Steve's recognized gain on sale.

Select one:

a. $0

b. $25,000

c. $165,000

d. $200,000