1. In the current year, a taxpayer exchanged farmland for an office building. The farmland had a basis of $750,000, a fair market value (FMV) of $1,200,000 and was encumbered by a $360,000 mortgage. The office building had an FMV of $1,050,000 and was encumbered by a $210,000 mortgage. Each party assumed the other's mortgage. What is the amount of the taxpayer's recognized gain?

1. $0
2. $150,000
3. $300,000
4. $450,000