Jim owns an apartment building with a fair market value of $225,000 and an adjusted basis of $85,000. He wants to acquire Frank's duplex, which has a fair market value of $200,000 and an adjusted basis of $130,000. In the exchange, Jim will also receive $25,000 in cash from Frank. Which of the following statements is correct with regard to recognition of gain in the like-kind exchange? A. Frank recognizes a $25,000 gain. B. Jim recognizes a $140,000 gain. C. Jim recognizes a $25,000 gain. D. Neither recognizes a gain.