Q. Pam exchanges a rental building, which has an adjusted basis of $420,000, for investment land which has a fair market value of $700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land? a. $0 and $420,000.

b. $100,000 and $420,000. c. $100,000 and $520,000. d. $280,000 and $700,000. e. None of a - d are correct