Ross Lives in a House He Received as a Gift

Ross lives in a house he received as a gift from his father.His father had lived in the house for 12 years.The adjusted basis of the house to his father was $160,000 and the fair market value at the time of the gift was $140,000.Ross sells this residence after living in it for 18 months for $150,000 and purchases a new home for $125,000.He incurs selling expenses of $7,000.What is Ross' recognized gain or loss and basis for the new residence?

A) ($17,000) ;$125,000.
B) ($17,000) ;$142,000.
C) $3,000;$125,000.
D) $3,000;$128,000.
E) None of these.