LaRhonda owns an office building that has an adjusted basis of $43,800. The building is subject to a mortgage of $19,000. She transfers the building to Miguel in exchange for $14,600 cash and a warehouse with an FMV of $48,600. Miguel assumes the mortgage on the building.

1. What are LaRhonda's realized and recognized gain or loss?
2. What is her basis in the newly acquired warehouse?

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LaRthda owns an office building that has an adjusted basis of $43,800. The building is subject to a mortgage of $19,000. She transfers the building to Miguel in exchange for $14,600 cash and a warehouse with an FMV of $48,600. Miguel assumes the mortgage on the building. a. What are La Rhonda's realized and recognized gain or loss? b. What is her basis in the newly acquired warehouse? b. Basis of warehouse