JB Manufacturing and BP Company exchange two pieces of land. JB’s land has a basis of $800,000 and a fair market value of $750,000. BP’s land has a basis of $560,000 and a fair market value of only $700,000 so BP gives JB an additional $50,000 cash. What are JB’s and BP’s deferred gain or loss on this exchange?
a. JB $50,000 deferred loss; BP $140,000 deferred gain
b. JB $50,000 deferred gain; BP $140,000 deferred gain
c. JB $50,000 deferred loss; BP $90,000 deferred gain
d. JB $50,000 deferred gain; BP $90,000 deferred gain