John Inc. and Sarah Company entered into an exchange of real property. Below is the information for the properties to be exchanged: John FMV Adjusted tax basis Mortgage $500,000 410,000 70,000 Sarah $530,000 283,000 100,000 Pursuant to the exchange, John assumed the mortgage on the Sarah property, and Sarah assumed the mortgage on the John property. Compute Sarah's gain recognized on the exchange and its tax basis in the property received from John. Multiple Choice $30,000 gain recognized; $313,000 basis in the John property. 100,000 gain recognized: $383,000 basis in the John property. $30,000 gain recognized; $283,000 basis in the John property. None of these choices are correct