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?

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