1. Robert and Frank entered into an agreement where Robert exchanges his office building for Franks farmhouse. The office building has a FMV of $480,000. Robert purchased the building in 2004 for $275,000 and has taken $65,000 of depreciation. Also, Robert has a mortgage on the building of $80,000, which Frank has agreed to assume. In exchange for the Roberts building Frank will transfer his farmhouse (FMV $350,000 / adjusted basis $225,000) plus equipment with a FMV of $50,000 and an A/B of $85,000.

   What is the amount realized by Robert on the exchange of his building?

   	a.	$480,000
   	b.	$430,000
   	c.	$400,000
   	d.	$350,000
   	e.	None of the above.

1. What is Roberts realized gain?

   	a.	$0
   	b.	$480,000
   	c.	$270,000
   	d.	$205,000
   	e.	None of the above

1. What is Roberts recognized gain?

   	a.	$0
   	b.	$270,000
   	c.	$50,000
   	d.	$130,000
   	e.	None of the above.

1. What is Roberts adjusted basis in the farmhouse after the exchange?

   	a.	$340,000
   	b.	$210,000
   	c.	$275,000
   	d.	$370,000
   	e.	None of the above.

1. What is Frank basis in the building after the exchange?

   	a.	$355,000
   	b.	$225,000
   	c.	$275,000
   	d.	$305,000
   	e.	None of the above.