Kerry Incorporated and Molly Company entered into an exchange of real property. Here is the information for the properties to be exchanged.

Kerry Molly

FMV $ 500,000 $ 530,000

Adjusted tax basis 410,000 283,000

Mortgage 70,000 100,000

Pursuant to the exchange, Kerry assumed the mortgage on the Molly property, and Molly assumed the mortgage on the Kerry property. Compute Molly's gain recognized on the exchange and its tax basis in the property received from Kerry.

Multiple Choice

$30,000 gain recognized; $313,000 basis in the Kerry property.

100,000 gain recognized; $383,000 basis in the Kerry property.

$30,000 gain recognized; $283,000 basis in the Kerry property.

None of these choices are correct.