Lily exchanges a building she uses in her rental business for a building owned by Kendall, which Lily will use in her rental business. The adjusted basis of Lily's building is $120,000 and the fair market value is $170,000. Which of the following statements is correct?

	A.	Lily's recognized gain is $50,000 and her basis for the building she received is $120,000.
	B.	Lily's recognized gain is $50,000 and her basis for the building she received is $170,000.
	C.	Lily's recognized gain is $0 and her basis for the building she received is $120,000.
	D.	Lily's recognized gain is $0 and her basis in the building she received is $170,000.
	E.	None of the above is correct!