Janel exchanges a building she uses in her rental business for a building owned by Russel that she will use in her rental business. The adjusted basis of Janel’s building is $160,000, and the fair market value is $250,000. The adjusted basis of Russel’s building is $80,000, and the fair market value is $250,000. Which of the following statements is correct?

a. Janel’s recognized gain is $0, and her basis for the building received is $160,000.

b. Janel’s recognized gain is $90,000, and her basis for the building received is $160,000.

c. Janel’s recognized gain is $0, and her basis for the building received is $250,000.

d. Janel’s recognized gain is $90,000, and her basis for the building received is $250,000.