Bruce Baxter exchanges an office building worth $1,025,000 for a warehouse owned by Dan Denton. Bruce's adjusted basis in the office building is $750,000 and Dan's basis is $800,000. The fair market value of Dan's warehouse is $825,000. Bruce’s office building is subject to a $200,000 mortgage which Dan assumes.

a. What is Bruce's realized and recognized gain or loss and his basis in the warehouse?

b. What is Dan’s realized and recognized gain or loss and his basis in the office building?