Elvira owns an office building, and Jared Partnership owns an apartment building. Each property is encumbered by a mortgage. Elvira and Jared Partnership agree to exchange their properties and mortgages, with any difference to be paid in cash. The fair market values, mortgages, and adjusted bases for the properties are as follows: Jared Partnership Building Elvira's Building Fair market value $228,000 $266,600 Mortgage debt 79,700 134,700 Adjusted basis 105,500 164,400 a. Complete the computations below to be included in a letter to Elvira explaining who will have to pay cash to complete the exchange, the amount of her gross selling price, and the amount of gain or loss she will realize on the exchange. Jared Partnership Building Elvira's Building Difference Fair market value Mortgage debt Equity in building Determine the gross selling price. Cash received from Jared Value of building received Mortgage assumed by Jared Assumption of Jared's mortgage Gross selling price Determine Elvira's realized gain or loss on the exchange. Gross selling price Adjusted basis Realized gain