Arthur exchanged a building used in his business, which he has owned for three years, for a parcel of unimproved land on which he plans to construct a new building. His building as a fair market value of $1,000,000, and an adjusted basis of $300,000. The land he acquires has a fair market value of 800,000, and he will receive cash of $200,000 as part of the exchange.

a. What is Arthurs realized and recognized loss?

b. What is Arthurs basis in the new land?

c. What is Arthurs holding period of the new land?