Misha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land As fair value was $165,000 at the time of the exchange. Misha gave Land A and $12,000 in cash in exchange for Land B, which had a fair market value of $177,000 at the time of the exchange. Assume the exchange qualifies as a like-kind exchange.

1. What is Misha's recognized gain/loss on the exchange?

A. $12000 gain B. $0 gain C. $27000 D. $15000

2. What is Misha's basis in Land B?

A. $150000 B. $177000 C. $162000