Exercise 7-6 (Algorithmic) (LO. 2, 5) Logan and Johnathan exchange land, and the exchange qualifies as like kind under 1031. Because Logan's land (adjusted basis of $218,000) is worth $261,600 and Johnathan's land has a fair market value of $207,100, Johnathan also gives Logan cash of $54,500. a. Logan's recognized gain is $ b. Assume that Johnathan's land is worth $235,440 and he gives Logan $26,160 cash. Logan's recognized gain is $