Byron Williams sold rental real estate (not primary residence) to a buyer who paid him $385,000 cash and assumed an existing mortgage of $160,000. The property had cost Byron $290,000 several years ago and he had made improvements of $52,000. Depreciation of $71,000 has been claimed and selling expenses were $30,500.

a. What is the amount of realized gain?

b. What is the amount of recognized gain?