Kahlil exchanges a farm that is used in his business for another farm. The old farm had an adjusted basis of $5,000 and the new one has a fair market value of $300,000. What is Kahlil's recognized gain or loss and the basis of the new farm?

Question 41 options:

a)

$0 and $5,000.

b)

$0 and $300,000.

c)

$295,000 and $5,000.

d)

$295,000 and $300,000.

e)

None of the above.