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Assume the following exchange meets the necessary requirements and thus qualifies for tax purposes as a like-kind exchange. Captain Kirk exchanges land that is used

Assume the following exchange meets the necessary requirements and thus qualifies for tax purposes as a like-kind exchange. Captain Kirk exchanges land that is used in his business and has a FMV of $610,000 for Spocks building, which has a FMV of $325,000. Captain Kirks basis in the land is $305,000 and Captain Kirks land is subject to a liability of $31,000 which Spock assumes.

(a) What is Captain Kirks recognized gain or loss on this transaction?

(b) What is Captain Kirks basis in the building?

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