Please help me understand the question

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $54,000. Koch originally purchased Machine 1 for $75,200, and Machine 1's adjusted basis was $40,100 at the time of the exchange. Machine 2's seller purchased it for $64,900 and Machine 2's adjusted basis was $55,100 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

Multiple Choice

• $40,100.
• $54,000.
• $55,100.
• $75,200.
• none of the above