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George owns real estate FMV $700,000, basis $430,000, encumbered by a mortgage of $180,000. Gracie owns similar real estate FMV $620,000, basis $500,000, encumbered by

George owns real estate FMV $700,000, basis $430,000, encumbered by a mortgage of $180,000. Gracie owns similar real estate FMV $620,000, basis $500,000, encumbered by a mortgage of $100,000.

If George and Gracie exchange properties, determine for both of them: Realized gain/loss; Recognized gain/loss; Basis in the property received. Show any necessary calculations.

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