Jobe Manufacturing and BAP Company exchange two pieces of land. Jobe’s land has a basis of $800,000 and a fair market value of $750,000. BAP’s land has a basis of

$560,000 and a fair market value of only $700,000 so BAP gives Jobe an additional

$50,000 cash.What are Jobe’s and BAP’s deferred gain or loss on this exchange?

a. Jobe $50,000 deferred loss; BAP $140,000 deferred gain

b. Jobe $50,000 deferred gain; BAP $140,000 deferred gain

c. Jobe $50,000 deferred loss; BAP $90,000 deferred gain

d. Jobe $50,000 deferred gain; BAP $90,000 deferred gain AppendixLO1