Jack owns 5 acres of land in Nevada that he purchased 10 years ago for $100,000. It now has a FMV of $600,000 and a $400,000 mortgage on it. He wants to exchange his land with Jill for her 3 acres of land in Idaho that has a FMV of $200,000 that she bought for $100,000 2 years ago. Jill assumes Jacks mortgage on the Nevada land.

Compute Jack and Jills realization and recognition of gains and the basis in the like-kind property each receives from the other.