Ray owns a rental property with an adjusted basis in Ray's hands of $100,000. Ray's property is subject to a mortgage of $20000.Ray transfers his rental property to Terry in exchange for $10000 cash and an apartment building with a fair market value of $150,000. Terry's property has no mortgage on it. Terry assumes Ray's mortgage of $20000 as part of the terms of the exchange.

Question 1: What is Ray's REALIZED gain on this transaction?

Question 2 What is Ray's RECOGNIZED gain on this transaction?

Question 3 What is Ray's BASIS in the NEW property he received in the exchange?