Question: Raymond exchanges a rental lake house with an adjusted basis of $200,000 and fair market value of $320,000 for a rental beach house with a fair market value of $290,000 and $30,000 cash. What are the recognized gain or loss and the basis of the beach house? Multiple Choice $0 gain and $230,000 basis. $30,000 gain and $200,000 basis. $30,000 gain and $230,000 basis. $120,000 gain and $320,000 basis.