Charla owns land used in her business with a basis of $70,000 and a fair market value of $100,000. She is planning to exchange the land for a warehouse owned by Jim and used in his business. Jim's warehouse has a basis of $50,000 and a fair market value of $150,000. The warehouse is also subject to a liability of $50,000. Charla has agreed to assume the liability for Jim. Requirement What is Jim'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. Harrison exchanges his apartment complex for Holly's farm, and the exchange qualifies as a like-kind exchange. Harrison's adjusted basis for the apartment complex is $650,000 and the complex is subject to a $250,000 liability. The FMV of Holly's farm is $760,000 and the farm is subject to a $160,000 liability. Each asset is transferred subject to the liability. Requirement What is Harrison's recognized gain and the basis of the new farm? Begin by calculating the realized gain. First identify the formula, then enter the applicable amounts and calculate the realized gain. The realized gain is The recognized gain is Now calculate the basis of the new farm. First identify the formula, then enter the applicable amounts and calculate the basis of the new farm