Johnson Inc Pursuant to the Exchange, C&K Paid $25,000 Cash to Johnson

Johnson Inc. and C&K Company entered into an exchange of real property. Here is the information for the properties to be exchanged. $$\begin{array} { l r r } & \text { Johnson } & C \& K \\\text { FMV } & \$ 900,000 & \$ 675,000 \\\text { Adjusted tax basis } & \mathbf { 5 9 3 , 0 0 0 } & 462,000 \\\text { Mortgage } & \mathbf { 2 0 0 , 0 0 0 } & - 0 \text { - }\end{array}$$ Pursuant to the exchange, C&K paid $25,000 cash to Johnson and assumed the mortgage on the Johnson property. Compute C&K's gain recognized on the exchange and its tax basis in the property received from Johnson.

A) $200,000 gain recognized; $662,000 basis in Johnson property
B) No gain recognized; $462,000 basis in Johnson property
C) No gain recognized; $487,000 basis in Johnson property
D) None of the above