T has 100 acres of unimproved land which he farms. Its cost basis is $10,000 but its value much greater. T trades it to B for a city apartment building worth $70,000 which has a basis to B of $30,000. B transfers to T, as well, $4,000 in cash and 100 shares of X Corp. stock held for 3 years for which Bs basis is $40,000 but its fair market value is $26,000. None of the property is mortgaged. B always claimed straight line depreciation on the apartment. a. As regards to T:

i. What is Ts realized gain on the exchange?

ii. What is Ts recognized gain on the exchange?

iii. What is Ts basis in the X Corp stock?

iv. What is Ts basis for the apartment building?

b. As regards to B:

i. What is Bs realized gain and loss on the exchange?

ii. What is Bs recognized gain or loss on the exchange?

iii. What is Bs basis for the farm land acquired?

iv. Could 1250 affect B on these facts if, instead of straight line, B had claimed accelerated depreciation on the apartment building?