10.

a. Zachary Corporation exchanges a warehouse located in Michigan (adjusted basis of $560,000) for a warehouse located inOhio (adjusted basis of $450,000; fair market value of $525,000). Indicate the amount of gain or loss that is recognized by Zacharyon the exchange and the basis of the warehouse acquired.

b. Assume that in addition to the warehouse, Zachary Corporation also received $100,000 in cash. Indicate the amount of gainor loss that Zachary recognized on the exchange and the basis of the warehouse acquired.

c. How would your answer in b. change if instead of receiving $100,000 in cash, the other party assumed Zacharys$100,000 mortgage on the Michigan warehouse?

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