Katrina owns undeveloped land with an adjusted basis of $337,500. She exchanges it for other undeveloped land worth $750,000. Assume that Katrina holds the land as an investment.

a. Katrina's realized is gain and her recognized gain is Feedback Check My Work The tax law recognizes that nontaxable exchanges result in a change in the form but not in the substance of the taxpayer's relative economic position b. Katrina's basis in the undeveloped land she receives is