Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a...

Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000.  Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned.  The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000.  Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000.  What is Bob's bases in the triplex?

Select one of the answers below and show your work:

a. $86,000

b. $279,000

c. $300,000

d. $312,000