Melvin Receives Stock as a Gift from His Uncle

Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $30,000 and the fair market value is $38,000. Melvin trades the stock for bonds with a fair market value of $35,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?

A) $0, $30,000.
B) $5,000, $33,000.
C) $5,000, $30,000.
D) $8,000, $33,000.
E) None of the above.