Koch Traded Machine 1 for Machine 2 When the Fair

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,550. Koch originally purchased Machine 1 for $75,900, and Machine 1's adjusted basis was $40,450 at the time of the exchange. Machine 2's seller purchased it for $64,550 and Machine 2's adjusted basis was $55,450 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

A) $40,450.
B) $49,550.
C) $55,450.
D) $75,900.
E) None of the choices are correct.