How does the reporting of gains and losses differ between $(1)$ selling property for cash and $(2)$ exchanging property for like$-$kind property?

Multiple choice question.

In a like$-$kind exchange, the gain$/$loss is deferred. In a cash transaction, the gain$/$loss is recognized immediately.

There is no difference. In either transaction, the taxpayer has the option of recognizing the gain$/$loss immediately or deferring the recognition.

In a cash transaction, the gain$/$loss is deferred. In a like$-$kind exchange, the gain$/$loss is recognized immediately.

There is no difference. In either type of transaction, the gain or loss is recognized immediately.