14. Perry owns a building used in his business with an adjusted basis of $310,000 and a $875,000 FMV. He exchanges the building for a building owned by Dale. Dale's building has a $1,150,000 FMV but is subject to a

$275,000 liability. Perry assumes Dale's liability and uses the building in his business.

Requirements

What is Perry's

a. realized gain?

b. recognized gain?

c. basis for the building received?

Question on bottom

Part 1

Requirement a. What is Perry's realized gain?

The realized gain is

Part 2

Requirement b. What is

Perry's

recognized gain? (If there is no recognized gain, make sure to enter "0" in the appropriate cell.)

The recognized gain is

Part 3

Requirement c. What is Perry's basis for the building received?

Perry's basis for the building received is