17. Rachelle owned land with a basis of $200,000, subject to a mortgage of $125,000. She exchanged the land held for another parcel of land with a fair market value of $375,000 plus cash of $50,000, and the she was relieved of the mortgage on the relinquished land. The transaction qualified for like-kind exchange treatment. What amount of taxable gain will be recognized on Rachelles tax return for this exchange?

1. $50,000

2. $175,000

3. $230,000

4. $550,000