Answer the following questions based on the information provided. If the response is zero, enter a 0. Show all calculations.

a.What is the gain recognized by Jane on the exchange?

b. What is Janes basis in the new Parcel 2 received by Lisa?

Jane Delaney and Lisa Marie entered into a qualified exchange of like-kind property. Information about the properties being exchanged is provided below.

Data: Parcel 1 property transferred from Jane to Lisa: Fair market value of Parcel 1: $154,000 Jane's adjusted basis in Parcel 1: $127,000 Remaining mortgage on Parcel 1 assumed by Lisa: $31,000 Parcel 2 property transferred from Lisa to Jane: Fair market value of Parcel 2: $123,000 Lisa's adjusted basis in Parcel 2: $112,000