Cassidy owns land used in her business with a basis of $150,000 and a fair market value of $180,000. She is planning to exchange the land for a warehouse owned by Jack and used in his business. Jack's warehouse has a basis of $130,000 and a fair market value of $210,000. The warehouse is also subject to a liability of $30,000 Cassidy has agreed to assume the liability for Jack Requirement What is Jack'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. Realized gain The recognized gain is Now calculate the basis in the new land. First identify the formula, then enter the applicable amounts and calculate the basis of the new land, Basis of land