Exercise 13-37 (Algorithmic) (LO. 6)

Logan and Johnathan exchange land, and the exchange qualifies as like kind under 1031. Because Logan's land (adjusted basis of $203,000) is worth $243,600 and Johnathan's land has a fair market value of $192,850, Johnathan also gives Logan cash of $50,750.

a. Logan's recognized gain is $.

b. Assume that Johnathan's land is worth $219,240 and he gives Logan $24,360 cash. Logan's recognized gain is $.