McKenzie traded drilling equipment used in his business for similar equipment with slightly different features when the fair market value of both machines was $90,000. McKenzie originally purchased his machine for $140,000, and his adjusted basis in it was $75,000 at the time of the exchange. The other party had purchased his machine for $200,000 and his adjusted basis was $85,000 at the time of the exchange. What is McKenzie's adjusted basis in Machine 2 after the exchange?

Group of answer choices $75,000

$85,000

$140,000

$90,000

None of the choices are correct.