Identify how much gain the taxpayer must recognize and the taxpayers basis in the new property (assume all properties are business assets held more than one year). Show your work.

Patrick exchanges an office building (adjusted basis $45,000 & FMV $110,000) and boot (Cope, Inc. stock: adjusted basis $8,000 & FMV $10,000) for an office building with a FMV of $120,000.

What is Patrick's recognized gain?

What is Patrick's adjusted basis in the new office building?