Part II.Problems (2 problems worth 32 total points) (16 points) On March 15, 2018, Doug exchanged ranch land used in his business with a fair market value of $330,000, an adjusted basis of $225,000, subject to a liability of $60,000 for $15,000 cash and a livestock barn and land with a fair market value of $330,000 and subject to a mortgage of $75,000. Meghan owned the livestock barn and land which she used in her farming business and had an adjusted basis in the real property of $150,000. The transaction required that both liabilities would be assumed by the recipients in the exchange. Give the tax consequences of this exchange to both parties, being sure to show for each taxpayer the realized gain or loss, any recognized gain or loss, and the adjusted basis in the property received. 1