Question: Tim exchanges a warehouse for a building he will use as an office building. The Adjusted basis of the warehouse is $600,000 and the fair

Tim exchanges a warehouse for a building he will use as an office building. The Adjusted basis of the warehouse is $600,000 and the fair market value of the office building is $350,000. In addition, Tim receives cash of $150,000. What is the recognized gain or loss and the basis of the office building?

A. $ 0 and $ 350,000

B. $0 and $450,000

C ($150,000) and $ 300,000

D. ($200,000) and $ 350,000

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