A . Normal No Spacing H Q.3 Joseph exchanged farmhouse that he used in his farming business for a building used by Sandy in her motorcycle manufacturing business. The farmhouse had a FMV of $875,000 and cost $415,000. Joseph $245,000 of depreciation, but because of an error, the amount of depreciation he should have taken was $330,000. The building had a FMV of $700,000 and an adjusted basis of $825,000. Additionally, Sandy agreed to assume Joseph's mortgage of $150,000 and give Joseph cash of $25,000. What is Joseph's realized gain or loss? Calculate Joseph's basis in the building after the transaction. How much gain or loss did Joseph defer? Explain your