Fred and Sarajane exchanged land in a qualifying like­kind exchange. Fred gives up land with an adjusted basis of $12,000 (fair market value of $15,000) in exchange for Sarajane’s land with a fair market value of $13,000 plus $2,000 cash. How much gain should Fred recognize on the exchange? 

a. $3,000 

b. $2,000 

c. $1,000 

d. $0 

e. None of the above