1. Leo exchanged an apartment building (which he rented to tenants) for a commercial warehouse. Information is as follows

What Leo Gave:

Apartment building FMV=20,000,000

Leo bought it 5 years ago for 2,000,000, and there was 1,000,000 of accumulated depreciation

Mortgage on building (assumed by buyer)10,000,000

Furniture and fixtures FMV=10,000 (adjusted basis =10,000)

Cash1,000,000

What Leo Got:

Commercial warehouse FMV=22,000,000

(buyer had bought for 50,000,000 and there was 1,000,000 of accumulated depreciation)

Mortgage (assumed by Leo) 5,000,000

A car FMV=100,000 (buyer had bought it for 100,000)

Cash 200,000

1. What is the realized gain or loss to Leo_______________________-

1. What is the recognized gain or loss to Leo___________________________

1. What is Leo's basis in the new building_____________________________
2. What is the holding period of the new building for Leo_______________