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Harry exchanges his apartment complex for Heidi's farm, and the exchange qualifies as a like-kind exchange. Harry's adjusted basis for the apartment complex is $640,000 and the complex is subject to a $190,000 liability. The FMV of Heidi's farm is $750,000 and the farm is subject to a $110,000 liability. Each asset is transferred subject to the liability Requirement What is Harry's recognized gain and the basis of the new farm? Requirement What is Helmut's recognized gain and the basis of the new farm? Begin by calculating the realized gain. First identify the formula, then enter the applicable amounts and calculate the realized gain. The realized gain is $ The recognized gain is $ Now calculate the basis of the new farm. First identify the formula, then enter the applicable amounts and calculate the basis of the new farm. Basis of Basis of property exchanged Boot received Gain recognized farm $ +