Tax Accounting Review

4) Windom Properties and Baxley Rentals, both corporate landlords, exchange apartment buildings. The exchange qualifies as like-kind for both parties. Liabilities exist on each building and each person agrees to assume the liabilities encumbering the properties taken in the exchange. The properties GIVEN in the exchange (along with the liabilities attached to those properties) appear below each taxpayer. Windom Basis FMV Baxley Basis FMV Land and $350,00 $550,00 Land and Building $480,00 $460,00 Building 0 0 0 0 Cash given $40,000 $40.000 Liability on $250,00 Liability on property $200.00 property 0 assumed by Windom 0 assumed by on transfer Baxley on transfer What are both parties' realized gain/loss, recognized gain/loss, and adjusted basis of like property received in the exchange