Carey exchanges land for other land in a qualifying like-kind exchange.

Careys basis in the land given up is $115,000, and the property has a fair market value of $150,000.

In exchange for her property, Carey receives land with a fair market value of $100,000 and cash of $10,000.

In addition, the other party to the exchange assumes a mortgage loan on Careys property of $40,000..

a. Calculate Careys recognized gain, if any, on the exchange.

b. Calculate Careys basis in the property received.