Company B and Firm W exchanged the following business real estate:

Blackacre FMV $486,000 Mortgage (121,500) Equity $364,500

Whiteacre FMV $562,000 Mortgage (197,500) Equity $364,500

a. If Bs adjusted basis in Blackacre was $291,600, compute Bs realized gain, recognized gain, and basis in Whiteacre.

B. If W's adjusted basis in Whiteacre was $112,400, compute Ws realized gain, recognized gain, and basis in Blackacre.

Answers required:

Realized gain

Recognized gain

Basis

Blackacre Whiteac exchanged (exchanged re by B) by W) $ 486,000 $562,000 FMV Mortgage (121,500) (197,500) $. 364,500 364,500 Equity