1. Sarah exchanged a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics.

Adjusted Basis Fair Market Value

Sarah's real property $10,000 $24,400

Tyler's real property 5,500 19,520

Tylers Equipment 4,392 7,320

a. What are Sarah's realized and recognized gain or loss on the land and building that she gave to Tyler, and what is her basis in the land/building, and equipment that she acquired? Please make it clear if it is a gain or a loss. (SHOW YOUR WORK)

Note: this requires 4 answers 1)realized gain (loss) for land/building, 2) recognized gain (loss) for land/buildings 3) basis of the newly acquired equipment, and 4) basis in newly acquired land/building.

Realized Gain =

Recognized gain =

Basis of the newly acquired equipment=

Basis in newly acquired land =

b. What are Tyler's realized and recognized gain or loss on the land/building, and equipment he transferred to Sarah? And what is Tylers basis in his newly acquired land/building acquired from Sarah? Note: this requires 5 answers 1) realized gain (loss) for equipment; 2) recognized gain(loss) for equipment; 3)realized gain (loss) for land/building; 4) recognized gain (loss) for land/buildings; 5) basis in new land/building.