Sanjay exchanges a warehouse he uses in his rental business for a building owned by Sidney which he will use in his rental business. The adjusted basis of Sanjay's building is $320,000 and the fair market value is $500,000. The adjusted basis of Sidney's warehouse is $160,000 and the fair market value is $500,000. Which of the following statements is correct? Multiple Choice Sanjay's recognized gain is $0 and his basis for the warehouse received is $500,000. Sanjay's recognized gain is $180,000 and his basis for the warehouse received is $320,000 Sanjay's recognized gain is SO and his basis for the warehouse received is $320,000 Sonjay's recognized gain is $180,000 and his basis for the warehouse received is $500,000