Jenny is a commercial real estate manager in Louisiana. She owns an apartment building that has a fair market value (FMV) of $300,000. She paid $100,000 for the building several years ago. Her brother, Buddy, owns an office building in California and agrees to trade buildings with her. The value of the office building in California is $300,000. The exchange officially took place last year. This year, Buddy sells the Louisiana apartment building for $300,000. How much gain must Jenny Recognize this year?

$100,000

$300,000

$0

$200,000