Land Corporation, which is owned 100% by Sandy, owned land with a basis of $200,000 and a fair market value of $900,000 that was held for investment. Rick wanted to purchase the land for $900,000. Sandy owned an office building with a basis of $750,000 and a fair market value of $900,000. Instead of selling the land to Rick, Land Corporation exchanged the land for Sandys office building in August 2016. Two months later Sandy sold the land to Rick for $900,000. Sandy and Rick are not related. How much gain, if any, is recognized on each of these transactions by each of the parties?

a. No gain recognized by any of the parties.

b. Gain of $700,000 to Land; Gain of $150,000 to Sandy; 0 to Rick.

c. No gain to Land; Gain of $150,000 to Sandy; 0 to Rick.

d. None of the above.

My answer is (b)Gain of $700,000 to Land; Gain of $150,000 to Sandy; 0 to Rick. Is this correct ?