Johann exchanges an apartment building for an office building worth $100,000. The apartment building has an adjusted

Question:

Johann exchanges an apartment building for an office building worth $100,000. The apartment building has an adjusted basis of $80,000 and is encumbered by a $30,000 mortgage, which the owner of the office building assumes in the exchange.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.