30 Points, Jack owns an attractive piece of undeveloped commercial real estate in Brooten, Minnesota with a fair market value of S300,000 and an adjusted basis of S125,000. Jill, a real estate developer from Belgrade, Minnesota has decided to make an offer to purchase Jack's property. She agrees to assume Jack's mortgage of $50,000 and pay the balance of S250,000 in cash. The sale is closed on February 1, 2020 using Tri County Title Company. Jack recently heard of a way he could defer paying tax on his sale and is interested in pursuing it. Jane owns 40 acres near Elrosa, Minnesota that Jack has identified as a possible replacement. He will have to invest an additional $100,000 cash to satisfy Jane's selling price of $350,000. Jane's basis in the 40 acres is $100,000. Please explain in detail how the deferred exchange works and the tax consequences for Jack and Jane including their realized gain, recognized gain and Jack's basis in the replacement property. Please include a flow chart that describes the steps of the process. JACK JANE Amount Realized Adjusted Basis Realized Gain Recognized gain Basis in Replacement Property None 30 Points, Jack owns an attractive piece of undeveloped commercial real estate in Brooten, Minnesota with a fair market value of S300,000 and an adjusted basis of S125,000. Jill, a real estate developer from Belgrade, Minnesota has decided to make an offer to purchase Jack's property. She agrees to assume Jack's mortgage of $50,000 and pay the balance of S250,000 in cash. The sale is closed on February 1, 2020 using Tri County Title Company. Jack recently heard of a way he could defer paying tax on his sale and is interested in pursuing it. Jane owns 40 acres near Elrosa, Minnesota that Jack has identified as a possible replacement. He will have to invest an additional $100,000 cash to satisfy Jane's selling price of $350,000. Jane's basis in the 40 acres is $100,000. Please explain in detail how the deferred exchange works and the tax consequences for Jack and Jane including their realized gain, recognized gain and Jack's basis in the replacement property. Please include a flow chart that describes the steps of the process. JACK JANE Amount Realized Adjusted Basis Realized Gain Recognized gain Basis in Replacement Property None