M Exchanged a Vacant Lot Worth $32,500 for Farm Land

M exchanged a vacant lot worth $32,500 for farm land worth $28,500.M received $1,000 down and will receive $1,000 per year for each of the three following years.M's basis in the lot was $29,000.How much gain must M recognize in each of the four years, respectively?

A) $1,000; $1,000; $1,000; $500
B) $875; $875; $875; $875
C) $3,500; $0; $0; $0
D) $500; $1,000; $1,000; $1,000