37.

William exchanges real property for other real property in a qualifying like-kind exchange. William's basis in the land given up is $165,000, and the property has a fair market value of $280,000. In exchange for his property, William receives land with a fair market value of $260,000 and cash of $20,000.

a. Calculate Wiliams realized and recognized gain, if any, on the exchange.

b. Calculate William's basis in the property received.