1.Peter Payerson yransfers an apartment building with an adjusted basis of $160,000 and fair marker value of $235,000 for Charlie Claussen's apartment building (adjusted basis $120,000) with a fair market value of $ 220,000 and cash of $55,000 from Charlie. Peter's mortgage of $45,000 is assumed by Charlie whose mortgage of $85,000 is assumed by peter. What os the realized and recognized gain or loss for Peter and Charlie and what are their bases in their acquired buildings?

2. Steven Seller owned and managed a clothing store that was destroyed by a hurricane. He received an insurance award of $200,000 for the store, which had an adjusted basis of $120,000. A year later he replaced the clothing store with another one for $225,000

a. What is Seller's realized and recognized gain or loss, and the basis of the replacement clothing store?

b. What is Seller's realized and recongnized gain or loss and the basis if he replaced the clothinf store with a car repaur shop which he managed?