Tara and her sister Wendy exchanged rental properties in May 2016. Wendy sold the property she received in the exchange on February 1, 2018. What is the consequence to both sisters?

a. Tara and Wendy met the holding period and have nontaxable exchanges.

b. Wendy did not meet the holding period. Tara and Wendy must recognize any gain or loss on the exchange.

c. Tara met the holding period and has a nontaxable exchange. Wendy did not meet the holding period and must recognize any gain or loss on the exchange.

d. Tara did not meet the holding period and must recognize any gain or loss on the exchange. Wendy met the holding period and has a nontaxable exchange.