Cassandra owns land used in her business with a basis of $155,000 and a fair market value of $170,000. She is planning to exchange the land for a warehouse owned by Jared and used in his business. Jared's warehouse has a basis of $135,000 and a fair market value of $185,000. The warehouse is also subject to a liability of $15,000. Cassandra has agreed to assume the liability for Jared. Requirement What is Jared's recognized gain and his basis in the new land? Begin by calculating the realized gain. First identify the formula, then enter the applicable amounts and calculate the realized gain. Amount realized Realized gain