Justin Trades an Office Building Located in Michigan to John

Justin trades an office building located in Michigan to John for an apartment complex located in North Carolina.Details of the two properties:
$\begin{array}{lrr}&\text { Justin } & \text { John } \\& \underline {\text { Michigan } } & \underline { \text { N. Carolina } } \\\text { Fair market value } &\$ 9,000,000 & \$ 4,000,000 \\\text { Adjusted basis } &3,000,000 & 3,000,000 \\\text { Liabilities transferred with property } &2,000,000 & -0-\end{array}$
In addition,John pays Justin $3,000,000 cash as part of this transaction.What is the gain (loss)recognized by John in this transaction and what is his basis in the Michigan property?
$\begin{array}{ll}\text { Gain Recognized } & \text { Adjusted B asis } \\a.\$ 1,000,000 & \$ 9,000,000 \\b.\$-0- & \$ 8,000,000 \\c.\$ 1,000,000 & \$ 6,000,000 \\d.\$-0- & \$ 9,000,000\end{array}$
e. Some other amounts