4. He exchanged a warehouse in Iowa used in his business with an adjusted basis of $195,000 for $15,000 in cash and a warehouse in Indiana to be used in his business with a fair market value of $285,000 and subject to a $35,000 liability. The liability was assumed by Brown.

1. Determine the amount of gain or loss to be recognized on Browns 2020 tax return. Be sure to state whether each exchange is a like-kind exchange or not a like-kind exchange.

2. Determine the basis of each of the assets that Brown received in the exchanges.